Saudi Arabian investment company Electronic Gaming Development Company (EGDC) has increased its stake. capcomOne of the best developer/publisher combos in the gaming industry. This investment is the latest example of a trend that has seen Saudi Arabia's stake in Capcom exceed 10%, with this new purchase pushing its overall stake even higher. In particular, EGDC is owned by the Misk Foundation, established in 2011 by Saudi Prince Mohammed bin Salman.
Aside from investments, Capcom has been on a hot streak lately. resident evil 9 and monster hunter wildTriple-A blockbusters like Pragmata are scheduled to release on April 17. However, recent investment activity has raised red flags among many fans of the company. They worry about human rights abuses in the region and a decline in publisher quality if Saudi Arabia owns too many shares.
As first reported by GameBiz.jp, EGDC increased its stake in Capcom by 1.01%, from 5.03% to 6.04%. These figures come from the “Large Holdings Report” submitted to the Kanto Regional Finance Bureau on April 6. Notably, EGDC's 5.03% stake in Capcom came just last month, which could indicate more purchases are on the way. Considering Capcom's recent success, it wouldn't be surprising to see the investment group splitting off larger pieces of the company.
EGDC is not the only major Saudi investor with a stake in Capcom, as Riyadh-based Ayar Investment First Co. holds about 6.6% of the company. While the investment is significant and appears to be happening quickly, it's not happening fast enough to be considered a hostile takeover by Capcom.
Capcom isn't the only gaming giant on the radar of Saudi Arabian investors. Investment groups in the region have invested in Nintendo, Nexon, Square Enix, Embracer Group, and others. There's even a $55 billion deal aimed at taking EA private, which would be a dramatic change for the company and the broader gaming industry. However, changes of that scale often take years to complete, so it may be a while before fans see any major changes from EA.
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Fans on the Fighters subreddit received the news with a thumbs down, with user LuvAshrepas commenting, “Someone please stop this before it's too late,” and thumper_92 commenting, “It's so crazy that literally no one can stop this.” However, Capcom isn't necessarily powerless to stop an acquisition if the situation turns hostile, as there are methods the company uses to thwart unsavory acquisitions. Diluting a hostile company's stock by finding a friendly buyer or allowing other investors to buy the stock at a discount are just some of the options.
It is clear that Saudi Arabian investors want to enter the gaming industry, but what the future holds is uncertain. Things can take many different forms, but at the current pace, the industry could look very different within a few years. The gaming industry is in need of an overhaul due to constant studio closures and cancellations. This is not what most people had in mind.
- Establishment date
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June 11, 1983
- headquarters
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Osaka, Osaka, Japan
- CEO
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Kenzo Tsujimoto
- subsidiary company
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Capcom Taiwan, Capcom USA, Capcom Vancouver, Capcom Division 1, Capcom Production Studio 4, Capcom Production Studio 1, Capcom Production Studio 2, Capcom Production Studio 3, Capcom Maintenance Service Co., Ltd.
