Niantic in Talks to Sell to Saudi-Owned Firm Behind Stumble Guys

Niantic, the developer behind the popular augmented-reality mobile game Pokémon Go, is reportedly negotiating the sale of its video game division to Scopely, a company owned by Saudi Arabia's Savvy Games Group, for a staggering $3.5 billion. According to Bloomberg, the potential deal would encompass Pokémon Go, which has captivated players worldwide by encouraging them to explore real-world environments to capture Pokémon.

A source, who spoke to Bloomberg on the condition of anonymity, indicated that while the transaction is not yet finalized, it could be announced within weeks if all parties agree. Neither Niantic, Scopely, nor Savvy Games Group have issued public statements regarding the speculated acquisition.

Scopely, which was acquired by Savvy Games Group in April 2023 for $4.9 billion, is known for publishing successful mobile games such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go. This acquisition followed the Saudi Arabian government's announcement of its intent to purchase a leading games publisher.

Savvy Games Group has also made significant investments in the esports industry, having acquired two of the largest esports companies, ESL and FACEIT, for a combined $1.5 billion in 2022. Saudi Crown Prince Mohammed bin Salman bin Abdulaziz has articulated a vision to position Saudi Arabia as a global hub for the games and esports sector by 2030, stating, “Savvy Games Group is one part of our ambitious strategy aiming to make Saudi Arabia the ultimate global hub for the games and esports sector by 2030. We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation in the sector, and further scale the entertainment and esports competition offerings across the Kingdom.”