Mar 8, 2023

Saudi Arabian sovereign wealth fund raises stake in "One Piece" and "Dragon Ball" Toei

Public Investment Fund (PIF), a Saudi Arabian sovereign wealth fund, has increased its stake in Japan's Toei from 5% to 6.03%.

The move comes as PIF continues to diversify its media assets. Last month, the PIF raised its stake in Nintendo to 8.26% and teamed up with Singapore's state-owned fund GIC to buy $966 million in bonds from South Korean entertainment technology company Kakao Corp. It has also invested in gaming companies such as Nexon, Capcom, and Koei Tecmo.

The news of the Saudi investment expansion, reported by Reuters, comes weeks after Toei announced its 10-year financial plan. In it, the company reassessed its position in an increasingly globalized content market, recognizing that its audience is becoming more diffuse and diverse.

By focusing on content for global markets and establishing production facilities outside of Japan, including in the U.S., the company hopes to increase the share of international revenue as a percentage of total revenue from the current 30% to 50% by 2033.

To achieve this, Toei aims to produce two live-action films and one animated feature film per year for a global audience, with the goal of generating around 3 billion yen (US$23 million) in box office revenue each. The company has also indicated that it will invest further in virtual production and artificial intelligence tools.

In 2022, Toei will have its highest grossing year ever, earning 32.56 billion yen (US$246.6 million) in Japan thanks to blockbusters such as "One Piece Film Red" and "The First Slam Dunk". The company's previous record was 17.98 billion yen (US$136.2 million at the current rate), set in 2009.