KSA esports and gaming company Savvy Games Group, has announced a $265 million investment in VSPO, a Chinese tournament operator and esports company, making the latter company its most significant equity holding company.
In a report by Esports Insider, both Savvy and VSPO stated that the deal symbolises a ‘landmark commercial partnership’ between Saudi Arabia and China to grow the esports industry further.
The exact details of the equity percentage are unknown. However, the transaction expects to conclude later this year. The transaction is subject to the receipt of required regulatory clearances and approvals, including ‘satisfaction of other closing conditions’ which are some of the reasons for its delay.
Esports growth
Danny Tang, CFO and Co-Founder of VSPO, commented, “This investment represents a substantial step in building the global esports sector and symbolises the incredible opportunity for growth within a relatively young industry. Esports are played and enjoyed around the world, so to have the support of Savvy, whose ambitions mirror our own, is hugely encouraging in our joint vision to promote esports as not just a sport but a worldwide community.”
Formerly known as VSPN, VSPO is one of the major stakeholders within the Asian esports industry that’s pushing the limits by operating different tournaments and leagues across China. The company is also long-term partners with some of the biggest game industry developers, including Krafton, Tencent and Garena.
The KSA’s investment will help VSPO deliver its worldwide esports strategy and accelerate growth. In addition, the investment will also see Savvy Games Group become a key stakeholder within the esports industry.
“Although we have seen significant growth of mobile esports over the last decade, especially in China, the industry is still very much in its infancy. As the virtual and physical worlds collide further and further, the popularity of esports will only grow and we are excited to work alongside Savvy to drive the long-term growth and development of the esports industry globally,” added Tang.
Isa Muhammad is a writer and video game journalist covering many aspects of entertainment media including the film industry. He's steadily writing his way to the sharp end of journalism and enjoys staying informed. If he's not reading, playing video games or catching up on his favourite TV series, then he's probably writing about them.
