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 negotiations 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, which has captivated millions by encouraging players to explore the real world in search of virtual Pokémon.

An anonymous source cited by Bloomberg mentioned that although the agreement is not finalized, it could be officially announced within weeks if all goes well. Neither Niantic, Scopely, nor Savvy Games Group have provided public comments on the potential acquisition.

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

In addition to Scopely, Savvy Games Group has also invested heavily in the esports industry, having purchased two of the world's leading esports companies, ESL and FACEIT, for $1.5 billion in 2022.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz has articulated the 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. 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.”