CEO says Embracer will not change in any way after Saudi Arabia $1bn investment
James Batchelor
Editor-in-Chief
Tuesday 14th June 2022
Embracer
Embracer Group CEO Lars Wingefors has addressed the controversy around the sale of an 8% stake in his company for $1 billion to Savvy Gaming Group.
In a statement shared with GamesIndustry.biz and posted on the company's website, Wingefors said he "understand[s] and respect[s] that there are different views on this topic," adding: "I don't claim to have the right answers, but I want it to be clear that this decision was not taken lightly."
Embracer announced the sale of its shares to Savvy Gaming Group last week, giving the latter 5% of voting power and 8.1% of the group's capital. The news followed Savvy Gaming Group acquiring a 5% stake in Nintendo and investing $1 billion into minor stakes of Capcom and Nexon.
Savvy Gaming Group is owned by Saudi Arabia's Public Investment Fund. The country is known to have a poor human rights record; for example, homosexuality is declared to be a crime that is punishable by anything from flogging to execution.
Saudi Arabia is also mired by other controversies, including allegations that authorities have forcibly removed and reportedly killed members of the Huwati tribe to make way for the construction of its Neom megacity project. Riot Games was previously in partnership with this project, but withdrew after the backlash it received.
In his statement, Wingefors emphasised that Savvy Gaming Group's investment will not affect the way Embracer Group is run.
"Embracer is built on the principles of freedom, inclusion, humanity and openness," he wrote. "The transaction with SGG will not change this in any way."
He added: "They have invested in Embracer because they support our current vision, strategy, and leadership, not to change it."
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