Shares of Nintendo (NTDOY) are trending higher after Saudi Arabia’s sovereign wealth fund said it’s interested in taking a larger stake in the Japanese video game maker.
The Public Investment Fund, Saudi Arabia's sovereign wealth fund, is already one of the largest investors in Nintendo with a current stake of 8.58%.
Now, the fund wants to expand its ownership of Nintendo and other video game developers.
The sovereign wealth fund also owns stakes in video game companies such as Capcom (CCOEF), Electronic Arts (EA), and Take-Two Interactive (TTWO).
Nintendo shares are up 4% on news that Saudi Arabia's sovereign wealth fund is considering an additional investment in the company.
Saudi Arabia’s Public Investment Fund currently manages more than $700 billion U.S. of assets and is a key part of the Arab nation’s plan to diversify the country's economy away from oil.
Video games are a key part of the fund’s diversification strategy. It has poured close to $40 billion U.S. into the Savvy Games Group, an e-sports company that publishes video games.
For its part, Nintendo is leveraging its intellectual property and characters into other forms of media, including films. The company’s 2023 "Super Mario Bros. Movie" grossed $1.36 billion U.S. at the global box office.
The company has also promised to announce a new version of its Switch video game console by April 2025.
Prior to today (Oct. 7), Nintendo’s stock had risen 3% this year to trade at $13.19 U.S. per share.
