Saudi Arabia’s Public Investment Fund (PIF) has officially acquired a 54% stake in MBC Group for SAR7.5 billion ($1.99 billion). This landmark transaction aligns with PIF’s Vision 2030 goals, emphasizing the Kingdom’s media and digital sector expansion.
Istedamah Holding Co., a major MBC Group shareholder, finalized the sale agreement with PIF, transferring 179.55 million shares at SAR41.60 per share. The agreement requires regulatory approvals, and MBC stated the transaction adheres to Saudi Exchange rules, awaiting final completion.
PIF’s Broad Media Vision
The acquisition strengthens PIF’s role in media investments, enhancing Saudi Arabia’s influence in the regional media landscape. PIF has also backed companies like the Saudi Co. for Artificial Intelligence and Elm Co., focusing on technology-driven investments.
MBC’s Impressive Financial Performance
MBC Group reported a notable financial boost this year, with net profit for the first half reaching SAR237.8 million ($63.4 million), a 359.8% increase from 2023. Additionally, the second quarter net profit surged 66.5% to SAR116.4 million ($31 million), indicating MBC’s strong operational strategy.
Share Market Impact and MBC’s Growth
Following PIF’s acquisition announcement, MBC’s share price rose by 10% to SAR45.75, giving it a market cap of SAR15.2 billion ($4.1 billion). The company’s subscription-based platform, SHAHID, saw a 36% year-on-year subscriber growth, while monthly active users on its ad-based platform reached 18 million by mid-year.
PIF’s Expanding Global Influence
PIF, aiming for $2 trillion in assets by 2030, reported $930 billion in assets as of March 2024, positioning it as the world’s fifth-largest sovereign wealth fund. By focusing on high-return sectors like media, technology, and entertainment, PIF supports Saudi Arabia’s diversification efforts beyond oil.
Looking Ahead: Vision 2030 Goals
With assets expected to double by 2030, PIF’s investments in domestic markets are transforming Saudi Arabia into a global media and technology hub. The MBC acquisition underlines the Kingdom’s commitment to Vision 2030, driving sustainable economic growth and job creation within the country.
