Niantic in Talks to Sell to Saudi Firm Behind Stumble Guys

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 blending the digital and real worlds as players hunt for Pokémon.

A source, who spoke to Bloomberg on the condition of anonymity, indicated that while the deal is not yet finalized, an announcement could be forthcoming within weeks if all goes according to plan. Both Niantic and Scopely, along with Savvy Games Group, have chosen to remain silent on the matter, offering no public statements regarding the speculated acquisition.

This move comes on the heels of Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, following the Saudi government's announcement of its intention to purchase a leading games publisher. Scopely is known for its successful mobile titles, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Savvy Gaming Group has been actively expanding its portfolio, having previously acquired two of the largest esports companies, ESL and FACEIT, for a combined $1.5 billion in 2022. This aggressive acquisition strategy aligns with Saudi Arabia's broader vision, as articulated by Crown Prince Mohammed bin Salman bin Abdulaziz, to position the country as a global hub for the gaming 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 untapped potential in the esports and games sector to diversify the economy, foster innovation, and enhance entertainment and esports offerings throughout the Kingdom.