Niantic in Talks to Sell Game Division to Saudi 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 Bloomberg, this potential deal would encompass Pokémon Go, which has captivated millions of players worldwide by encouraging them to venture into the real world to catch Pokémon.

A source, who spoke to Bloomberg on the condition of anonymity, indicated that although the transaction is not finalized, it could be announced within weeks if all parties agree. As of now, Niantic, Scopely, and Savvy Games Group have not made any public statements regarding this speculated acquisition.

This news comes on the heels of Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion. This move followed the Saudi Arabian government's announcement of its intention to acquire a leading games publisher. Scopely is known for its successful mobile games, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Additionally, Savvy Gaming Group made significant inroads into the esports industry in 2022 by purchasing two of the largest esports organizations, ESL and FACEIT, for a combined $1.5 billion.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz has articulated a clear vision for the country's gaming and esports ambitions, 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.”