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

Niantic, the developer behind the immensely 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 deal could encompass Pokémon Go, the game that revolutionized mobile gaming by encouraging players to venture into the real world to catch Pokémon.

A source, who spoke to Bloomberg on the condition of anonymity, indicated that while the deal is far from finalized, it could be announced within weeks if it receives the green light. Neither Niantic, Scopely, nor Savvy Games Group have issued any public statements regarding the potential acquisition.

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

Savvy Games Group has been actively expanding its influence in the gaming and esports industries. In 2022, the group acquired two major esports companies, ESL and FACEIT, for a combined total of $1.5 billion.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz has articulated the group's broader strategy, 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.”