Saudi Sovereign Wealth Fund Invests 1 Trillion Won in Nexon... What’s the Background?

[Asia Economy Reporter Kang Nahum] Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund), known as 'oil money,' has made a trillion-won level investment in Nexon, drawing attention to the background of this move.

According to industry sources on the 6th, PIF recently acquired 1.0578 trillion won worth of Nexon shares listed on the Japanese stock market, becoming the fourth largest shareholder (5.02%). This is the first time a Middle Eastern fund has made a large-scale investment in a major domestic game company.

Led by Crown Prince Mohammed bin Salman, PIF is known to operate a fund worth $500 billion (approximately 600 trillion won). Although PIF has not disclosed the exact reason for this investment, it can be inferred from the fact that Crown Prince Mohammed has shown great interest in the gaming industry.

Since 2020, PIF has secured stakes in global renowned game companies such as the Japanese game company SNK, Activision Blizzard, and Electronic Arts (EA). It also recovered its investment when Microsoft recently acquired Activision Blizzard at a high price. Last month, PIF acquired the global esports company ESL Gaming for 1 trillion won.

This year, Nexon presented its lineup keywords as ▲mobile adaptation of classic IPs ▲next-generation games aligned with global paradigm shifts ▲large-scale MMORPGs that will shake up the market. Along with the release of Dungeon & Fighter Mobile in the first quarter, Nexon plans to unveil new titles based on steady-selling intellectual properties (IPs) such as Mabinogi Mobile and TalesWeaver: Second Run.

Recently, Nexon's aggressive investments targeting the global entertainment market and its diversification of business are also analyzed as factors behind this large-scale investment attraction.

Previously, Nexon decided to invest a total of 600 billion won in the US AGBO studio, founded by world-renowned film directors the Russo brothers and producer Mike Larocca. AGBO is a global entertainment production company established to create various digital media content including films. The Russo brothers, who directed four Marvel movies including 'Avengers: Endgame' and 'Captain America: Civil War,' along with screenwriters Christopher Markus and Stephen McFeely, are part of the writing team.

A Nexon official said, "We do not know the exact reason for (PIF's investment), but we think it was made after seeing the company's portfolio, upcoming pipeline, and the company's vision to transform into a global content company."

This content was produced with the assistance of AI translation services.