According to the New York Times, the Saudi Arabian Public Investment Fund (PIF), after the acquisition of EA, has begun to overstretch investment funds and to make new investments, partly because of some of the loss-making projects.
The PIF, led by Saudi Arabian Crown Prince Mohammed bin Salman, has made large-scale investments in various parts of the world in recent years, mainly to reduce Saudi Arabia ‘ s overall economy ‘ s high dependence on oil.
And a large part of his goal was in the entertainment industry, which included many investments in the game industry, such as holding shares of game distributors such as Take Two and Nintendo, which purchased the SNK in full and recently privatized EA at $55 billion.
However, PIF has not been successful in every investment, such as the city of the future being built by Saudi Arabia, Neom, which intends to launch a ski resort with robotics as employees, a coffee chain that currently has only one door city, a cruise company with only one cruise ship, and an electric car start-up company that has not yet delivered any car.
This, together with the fact that oil is full, as a result of geopolitical agreements and low oil prices, limits Saudi Arabia ‘ s ability to exploit and increases the Government ‘ s fiscal deficit, it is necessary to start borrowing to achieve its political opinion.
According to the New York Times, sources have revealed that PIF has begun to restructure, that the Crown Prince has laid off at least one of Neom’s leaders, and that PIF will embrace investment in traditional areas such as stocks.
But there’s no reason to worry about PIF turning over to sell EAs, as PIF said earlier, investing in EAs is considered a long-term investment, and eventually they think it’s worth double.
