Considered one of this yr’s greatest gaming tales is the $55 billion sale of Digital Arts to a gaggle of personal buyers together with Saudi Arabia’s Public Funding Fund. Subsequently, there have been rumors that Saudi Arabia is backing Paramount’s bid for Warner Brothers, which Paramount has denied. Now, a brand new report means that the PIF will not be making any new main purchases any time quickly after experiencing a cash-flow downside.
In keeping with The New York Times, the PIF has been hit by a lot of investments which might be underwater financially. The report particularly talked about that the deliberate Saudi Arabian metropolis Neom and a ski resort with robotic employees are among the many PIF belongings which might be presently flailing. Saudi Arabia’s wealth nonetheless stems from its huge oil deposits, however the kingdom has limitations on how a lot oil it might promote with out violating agreements and treaties already in place. That would probably imply PIF has been spending assets quicker than Saudi Arabia can replenish the fund.
PIF spokesperson Marwan Bakrali denied the report and advised the New York Occasions that the PIF nonetheless has $60 billion in money and “comparable monetary devices.” Technically, the sale of EA has but to formally undergo but, and it nonetheless wants regulatory approval within the US and different international locations earlier than it may be finalized.
Saudi Arabian-owned cell developer Scopely bought Niantic’s online game division in March of this yr, which gave it management of Pokemon Go and different cell titles. Saudi Arabia has invested in a number of online game firms, together with Nintendo and Take-Two Interactive. But when the EA deal goes ahead, it is going to be the dominion’s greatest funding within the trade up to now. That is a part of Saudi Arabia’s agenda to diversify its monetary portfolio in addition to a possible try to attract consideration away from the nation’s quite a few human rights violations.