Niantic, the developer behind the 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 deal would encompass Pokémon Go, a game that has captivated millions worldwide by encouraging players to venture outdoors to capture virtual Pokémon.
A source, speaking to Bloomberg under the condition of anonymity, indicated that while the transaction is not finalized, an announcement could be expected within weeks if the negotiations are successful. Both Niantic and Scopely, along with Savvy Games Group, have refrained from making any public statements regarding this reported acquisition.
This development comes on the heels of Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, following the Saudi Arabian government's declaration of intent to purchase a leading games publisher. Scopely is renowned for its portfolio of successful mobile games, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.
Additionally, Savvy Gaming Group has made significant moves in the esports arena, having acquired two of the world's largest esports organizations, ESL and FACEIT, for $1.5 billion in 2022. Saudi Crown Prince Mohammed bin Salman bin Abdulaziz articulated the broader vision behind these acquisitions, 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 and innovative potential of the gaming and esports industries, 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."
