Niantic, the developer behind the wildly popular augmented-reality 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 deal would encompass Pokémon Go, which has captivated millions by encouraging players to explore the real world in search of virtual Pokémon.
While the acquisition is not yet finalized, a source who spoke to Bloomberg under the condition of anonymity suggested that the deal could be confirmed within weeks if it receives the necessary approvals. Neither Niantic, Scopely, nor Savvy Games Group have made public comments regarding the reported transaction.
This move comes on the heels of Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, following a statement from the Saudi Arabian government expressing its intent to acquire "a leading games publisher." Scopely is well-known for publishing successful mobile games such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.
Savvy Games Group has also made significant investments in the esports industry, having purchased ESL and FACEIT, two of the largest esports companies globally, 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 leading 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.”
The Crown Prince further emphasized the economic diversification and innovation goals of these acquisitions, saying, “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.”
