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 negotiating to sell its video game division to Scopely, a company owned by Saudi Arabia's Savvy Games Group, for approximately $3.5 billion. According to Bloomberg, this deal would encompass Pokémon Go, which has captivated players worldwide by encouraging them to explore real-world locations to capture Pokémon.

A source, who spoke to Bloomberg on the condition of anonymity, indicated that while the deal is not finalized, it could be announced within weeks if approved. Neither Niantic, Scopely, nor Savvy Games Group have made 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 successful mobile games such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go. This acquisition followed the Saudi government's announcement of its intent to purchase a leading games publisher.

Savvy Games Group has also made significant investments in the esports industry, acquiring ESL and FACEIT, two of the largest esports companies, for $1.5 billion in 2022. Saudi Crown Prince Mohammed bin Salman bin Abdulaziz has articulated a vision to position Saudi Arabia as a 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. 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.”