- Nintendo (OTC:NTDOY) stock got a powerup Monday on news that Saudi Arabia wants to increase its stake in the Japanese video game company
- The financing would come from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, which already holds an 8.58 per cent stake in Nintendo
- Prince Faisal bin Bandar bin Sultan Al-Saud, vice chair of the PIF-owned Savvy Games Group, indicated that the fund is open to expanding its investments in Nintendo and other Japanese gaming firms.
- Nintendo stock opened trading at US$13.65 per share
Nintendo (OTC:NTDOY) stock got a powerup Monday on news that Saudi Arabia wants to increase its stake in the Japanese video game company.
The financing would come from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), which already holds an 8.58 per cent stake in Nintendo. The PIF revealed its intentions over the weekend through an interview with Kyodo News. Prince Faisal bin Bandar bin Sultan Al-Saud, vice chair of the PIF-owned Savvy Games Group, indicated that the fund is open to expanding its investments in Nintendo and other Japanese gaming firms.
This announcement led to a jump in Nintendo’s stock price on Monday, reflecting investor optimism about the potential for increased capital and strategic collaboration. The PIF’s interest is part of a broader strategy under Saudi Arabia’s Vision 2030 initiative, aimed at diversifying the kingdom’s economy away from oil by investing heavily in the gaming sector.
The PIF has been actively building its portfolio in the gaming industry, with stakes in other prominent companies such as Capcom (OTC:CCOEF) and U.S.-based developers Electronic Arts (NDAQ:EA) and Take-Two Interactive (NDAQ:TTWO). The fund’s strategy includes fostering synergies between these investments and promoting the localization of video games for various markets.
Nintendo, known for its household name franchises such as “Super Mario Bros.” and “The Legend of Zelda.” has been leveraging its intellectual property across different media. The success of “The Super Mario Bros. Movie,” which grossed US$1.36 billion, is a prime example of this approach. The company is also working on new projects, including a sequel to the Mario movie and a film adaptation of Zelda series.
Despite a recent dip in revenue and profit, Nintendo’s long-term prospects remain strong, bolstered by its robust IP portfolio and the anticipated release of a new version of its Switch console by (possibly) April 2025. The potential for increased investment from the PIF adds another layer of optimism for investors looking at Nintendo’s future growth.
With headquarters in Kyoto, Japan Nintendo Co., Ltd. is a multinational video game company that develops, publishes and releases video games and video game consoles.
Nintendo stock (OTC:NTDOY) opened trading up 4 per cent at US$13.65 per share on the OTC Pink market, where it rose more than 2 per cent last week. Nintendo stock has risen nearly 5 per cent since the year began.
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(Top image source: Nintendo.)