Saudi Arabia’s Crown Prince is now SNK’s largest shareholder

Update n. 2 [Fri 27th Nov, 2020 12:40 GMT]: The Mohammad bin Salman Charitable Foundation confirmed that it is investing 813 million riyals ($ 223 million) in SNK, which gives it a 33.3% stake in the company. This values ​​the company at $ 669 million (thanks, GamesIndustry.biz).

The purchase was made through the Electronic Games Development Company, a wholly-owned subsidiary, and stipulates that the foundation will eventually purchase an additional 17.7% of the shares of SNK, which will give it 51% of the Japanese company of video games. This would give the Prince, through his foundation and EGDC, a majority stake in the company.

SNK Corp’s stock price on KOSDAQ rose in response to the news, rising 30% to 16,500 Korean won ($ 14.93).

Update n. 1 [Thu 26th Nov, 2020 12:20 GMT]: It would appear that EGDC will become the main shareholder of the company, rather than buying the company out altogether. The deal will see EGDC get 33.3% of SNK’s shares.

Original story [Thu 26th Nov, 2020 11:15 GMT]: Well, here’s a story we didn’t expect to write this morning.

According to reports from the Far East (thanks, ResetEra), video game veteran SNK, famous for properties like Samurai Shodown, metal babosa

Yes King of fighters – was acquired by Electronic Gaming Development Company (EGDC) based in Saudi Arabia.

The agreement, which was signed today, transfers all SNK shares to EGDC. However, the deal was reportedly 100% funded by Saudi Arabia’s Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, who is EGDC’s largest shareholder. It would appear that the SNK acquisition is part of the prince’s “Saudi Vision 2030” program, which aims to diversify the traditionally oil-driven Saudi economy across sectors such as tourism and technology.

The Crown Prince is a controversial figure in global politics and is accused of participating in the 2018 assassination of Washington Post journalist and Saudi dissident Jamal Khashoggi. He is also accused of detaining and torturing human rights activists and of undertaking the mass execution of 37 civilians in 2019.

SNK was bought by a group of Chinese investors in 2015, with the aim of turning the company’s properties into a successful “Marvel-style” multimedia factory.