Saudi Arabia’s Public Investment Fund (PIF) has completed the acquisition of a 54 per cent majority stake in MBC Group, the leading media and entertainment company in the Middle East and North Africa. The sovereign wealth fund purchased the shares from Istedamah Holding Company in a private transaction valued at approximately $1.99 billion (SAR 7.47 billion).
A Strategic Investment in Media and Entertainment
The deal involved the purchase of 179.55 million shares at a price of SAR 41.60 per share. This acquisition is a cornerstone of PIF’s strategy to invest in promising sectors to accelerate Saudi Arabia’s economic diversification. By taking a majority stake in a media powerhouse that reaches an estimated 150 million viewers weekly, the fund is significantly strengthening its presence in the region’s rapidly evolving media landscape.
Bolstering the Kingdom’s Creative Ecosystem
This investment underscores PIF’s commitment to transforming Saudi Arabia into a regional hub for media, content creation, and technology. The fund aims to leverage MBC’s extensive reach and production capabilities to cultivate local talent and enhance the entire media ecosystem. The move is also expected to create new opportunities for private sector partnerships, further stimulating growth and innovation within the industry.
Creating Broader Economic Impact
PIF has stated that its investments in the media sector are designed to generate significant multiplier effects across other priority industries. The growth of a vibrant media and content sector is anticipated to boost related fields such as tourism, technology, leisure, sports, and real estate. This aligns with the broader goals of Vision 2030 to build a diversified and sustainable economy.
About PIF
The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia and one of the largest in the world. As the main engine of the Kingdom’s economic transformation, PIF is focused on driving the diversification of the Saudi economy by investing in strategic and commercially viable projects both domestically and internationally.
About MBC Group
MBC Group is the largest media company in the Middle East and North Africa. It operates a portfolio of television channels, radio stations, and digital platforms, offering a wide range of content including entertainment, news, drama, and sports to a global audience.
Source: Gulf Business
