- Saudi Arabia's sovereign wealth fund bought Activision Blizzard Inc. s stock last quarter, a commitment that is possibly tested as the video game giant contends with a legal challenge over harassment and sexism in the workplace.
The Public Investment Fund raised its share in the maker of popular games like World Warcraft by 13% to 37.9 million shares, with a market value of $3.6 billion, according to a regulatory filing. The sovereign investor, known as the PIF, has actually owned more than doubled its stake since the fourth quarter and has 4.9% in the firm.
The stock ended the second quarter down 8% from its peak mid-February. It has lost more than 10% so far this year.
The fund initiated investing in U.S. video game makers at the end of last year, when it bought more than $3 billion worth of share in Activision Blizzard, Electronic Arts Inc. and Take-Two Interactive Software Inc.
The crown prince has long been a fan of video games, and in 2018 said that his favorite diversion is Call of Duty series, Activision's best-selling franchise. His charitable organization owns one-third of Japanese gaming maker SNK Corp. and says it wants to raise its stake to 51% in the future.
But the industry hasn't fared well lately, as the surge in play during the onset of Covid 19 Pandemic slows down in 2012.
Activision, the largest U.S. game maker, is also facing a legal challenge to the so-called bro culture in games. Last month, Activision was sued by a California state agency which alleged women at the company were subjected to constant harassment, unequal pay and retaliation.
An Activision investor is also suing the company for not disclosing initial state investigation in video interviews.
The company, based in Santa Monica, California, has said it's taking steps to improve the workplace environment.
Since 2015, the assets under management of the PIF have increased from about $150 billion to $430 billion. It has invested in Uber Technologies Inc., placed $45 billion in the SoftBank Vision Fund, and backed electric vehicle maker Lucid Motors Inc. The fund, that is managed by governor Yasir Al Rumayyan, has outlined a plan to grow its assets to more than 4 trillion riyals in 2025.
Apart from Activision Blizzard, the PIF's other top shares were unchanged in the second quarter. The sovereign wealth fund's shares rose to $15.9 billion during the period to be disclosed by 3.2%. The S&P 500 Index advanced 5.8%.