Saudi sovereign fund acquires MBC television in $2 billion deal

Saudi Arabia’s Public Investment Fund agreed to buy a 54% controlling stake in MBC Group, consolidating its leadership in revamping the kingdom’s approach to media and entertainment.

The near $2 billion purchase essentially transfers the company – one of the Middle East’s biggest broadcasters – from one Saudi government entity to another. Under terms of the deal announced on Thursday, the sovereign wealth fund is buying MBC’s shares from Istedamah Holding Co., a subsidiary of the Ministry of Finance.

MBC Group was founded in 1991 in London by investor Walid Al-Ibrahim and a group of partners, established as the first independent Arabic satellite TV channel and later growing to launch the streaming service Shahid. Walid retains a 40% stake in MBC and will continue as its Chairman.

As part of its strategy under the new ownership, MBC said it will invest heavily in local content production in Saudi Arabia, expand its streaming offerings on Shahid and explore expansion into music, gaming and live events.

The PIF, which has spearheaded Crown Prince Mohamed bin Salman’s strategy to diversify the economy from dependence on oil, has assembled a collection of media and entertainment properties, including Savvy Games, the Sela sports and events group and the tourism-focused Asfar fund.