Niantic in Talks to Sell Game Business to Saudi Firm

Niantic, the developer behind the popular augmented reality game Pokémon Go, is reportedly negotiating the sale of its video game division to Scopely, a company owned by Saudi Arabia's Savvy Games Group, for a staggering $3.5 billion. This news, first reported by Bloomberg, suggests that the deal could encompass Pokémon Go, a game that has revolutionized mobile gaming by encouraging players to explore the real world in search of virtual Pokémon.

According to a source who spoke to Bloomberg on condition of anonymity, the transaction is not yet finalized but could be announced within weeks if all parties agree. Niantic, Scopely, and Savvy Games Group have all refrained from making 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 intention to purchase a leading games publisher.

Savvy Games Group has also made significant investments in the esports industry, having bought ESL and FACEIT, two of the largest esports companies globally, for $1.5 billion in 2022. These moves align with Saudi Arabia's broader strategy to become a leading hub for the gaming and esports sector by 2030, as articulated by Saudi Crown Prince Mohammed bin Salman bin Abdulaziz.

"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. He emphasized the country's goal to leverage the potential within the esports and gaming industries to diversify its economy, foster innovation, and expand entertainment and esports competition offerings throughout the Kingdom.