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

Niantic, the developer behind the wildly popular augmented reality mobile game Pokémon Go, is reportedly in discussions to sell 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, this potential acquisition would encompass Pokémon Go, a game that has captivated millions by encouraging players to explore the real world in search of virtual creatures.

While the deal is not yet finalized, a source speaking to Bloomberg on the condition of anonymity suggested that, if approved, an announcement could be made within weeks. Neither Niantic, Scopely, nor Savvy Games Group have been willing to comment publicly on these negotiations.

This move follows Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, a transaction that aligned with the Saudi Arabian government's expressed desire to purchase "a leading games publisher." Scopely is known for a variety of successful mobile games, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Savvy Games Group has also been active in the esports arena, having bought ESL and FACEIT, two of the world's largest esports companies, for $1.5 billion in 2022. These acquisitions are part of a broader strategy articulated by Saudi Crown Prince Mohammed bin Salman bin Abdulaziz, who aims to position Saudi Arabia as a global hub for the games and esports industry by 2030.

"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," the Crown Prince stated. He emphasized the goal of leveraging the esports and gaming sector to diversify the economy, foster innovation, and expand entertainment and esports competitions throughout the Kingdom.