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

Niantic, the developer behind the 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 a report by Bloomberg, this potential deal would include Pokémon Go, a game that has revolutionized mobile gaming by integrating real-world exploration with virtual creature collection.

A source, who wished to remain anonymous, shared with Bloomberg that while the deal is not yet finalized, it could be confirmed within weeks if all parties agree. Niantic, Scopely, and Savvy Games Group have all declined to comment publicly on the ongoing negotiations.

This potential acquisition comes on the heels of Savvy Games Group's purchase of Scopely in April 2023 for $4.9 billion. This followed the Saudi government's announcement of its intention to acquire a leading games publisher. Scopely is well-known for its portfolio of successful mobile games, including 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 acquired two of the world's largest esports companies, ESL and FACEIT, for a combined $1.5 billion in 2022. These moves are part of a broader strategy outlined by Saudi Crown Prince Mohammed bin Salman bin Abdulaziz, who aims to position Saudi Arabia as a global hub for the games and esports sector 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. "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."