PIF acquisition of MBC: A strategic move to strengthen media and telecom portfolio under Vision 2030 goals

Saudi Arabia’s Public Investment Fund (PIF) has announced a strategic acquisition of a 54% stake in MBC Group, valued at SR7.46 billion ($1.99 billion), marking a pivotal expansion in the Kingdom’s media landscape. The transaction was finalized with Istedamah Holding Co., MBC’s major shareholder, according to a filing by MBC on Saudi Arabia’s main market.

This acquisition enhances PIF’s significant influence across sectors like media, technology, and telecommunications as part of the Kingdom’s Vision 2030 economic transformation plan. Established in 1991, MBC Group — originally known as the Middle East Broadcasting Center — is the leading media conglomerate in the region, operating renowned television channels such as Al Arabiya, MBC Max, and MBC Bollywood, alongside its streaming platform, Shahid.

The acquisition deal is structured as a negotiated transaction under Saudi Exchange regulations, pending final regulatory approvals. Following the announcement, MBC’s stock surged by 9.98%, reaching SR45.75 as of mid-morning on November 3, 2024, a clear signal of market confidence in the partnership.

The deal further strengthens PIF’s telecommunications and media portfolio, adding to investments in prominent companies such as Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., Elm Co., and Saudi Telecom Co. This acquisition is part of PIF’s broader strategy to bolster sectors aligned with Vision 2030, aiming to elevate Saudi Arabia’s media and digital content capabilities.

Financially, MBC Group has demonstrated impressive growth, with its net profit climbing 66.5% to SR116.4 million in Q2 and a staggering 359.8% surge in profits during the first half of 2024. As Saudi Arabia’s “economic engine,” PIF continues to drive forward with substantial assets under management, having recently surpassed $925 billion, with ambitions to hit $2 trillion by 2030.

As per a Global SWF report, PIF stood as the world’s top sovereign wealth fund investor in 2023, injecting $31.6 billion into 49 deals, representing a year-over-year increase of 33%. This latest acquisition consolidates PIF’s role in advancing the Kingdom’s ambitious economic and technological reforms, reinforcing its standing as a powerful global investment entity.