Saudi wealth fund to snap up Scopely for $4.9 billion in one of largest-ever gaming deals

Marvel Strike Force

What happened?

• According to the official announcement, the Scopely acquisition is worth $4.9 billion. But it is unclear when the deal, which is also subject to regulatory approval, is expected to close.
• This should strengthen Savvy Games Group’s position in the global games market, thanks to Scopely’s development capabilities and expertise in mobile.
• The mobile publisher will in turn receive long-term financial support to deliver on its growth strategy and expand into new segments such as PC and consoles.
• “As part of the Savvy Games Group portfolio, we will continue to build one of the world’s most diversified mobile-first games companies,” Scopely co-CEO Javier Ferreira said.

Who is Scopely?

• Founded in 2011, Scopely is best known for mobile games like Marvel Strike Force, Star Trek Fleet Command, YAHTZEE With Buddies, and Walking Dead: Road to Survival.
• According to AppMagic, Scopely makes an average of roughly $40 million per month from in-app purchases. In total, its mobile portfolio has reached $3.5 billion in lifetime revenue and generated nearly 430 million downloads.
• Marvel Strike Force is Scopely’s highest-grossing game, with $673 million in revenue. It is followed by Star Trek Fleet Command ($563 million) and Tiki Solitaire TriPeaks ($468 million).
• Last year, Scopely acquired Fall Guys-like mobile hit Stumble Guys from Finnish studio Kitka Games. It has reached $90 million in revenue and surpassed 300 million downloads (via AppMagic).

Savvy Games Group’s gaming ambitions

• Founded and controlled by Mohammed bin Salman, the Public Investment Fund has a long history of gaming deals. In 2022, it established Savvy Games Group as a subsidiary primarily focused on the games industry.
• Last year, Savvy acquired a 5% stake in Nintendo for $3 billion. It also owns minority stakes in other Asian game companies such as Capcom, Nexon, and NCSoft.
• The PIF has also invested in Western publishers, including Activision Blizzard, Take-Two, and Electronic Arts. Not to mention its $1 billion investment in Swedish holding company Embracer Group.
• In 2022, Savvy Games Group also announced its plans to invest $38 billion in gaming as part of its global expansion strategy. Out of this amount, $13 billion was allocated to M&A deals and $18 billion to minority acquisitions.

Scopely deal ranks among top 10 most expensive video game acquisitions

• If the Scopely acquisition is cleared by regulators, it would rank as the 6th largest-ever M&A deal in the gaming sector.
• Right now, the top spot belongs to Microsoft’s proposed $68.7 billion acquisition of Activision Blizzard. But it is yet to be approved by regulators in the US and Europe.
• The top 5 also includes Take-Two’s acquisition of Zynga ($12.7 billion), Tencent’s deal to buy 81.4% of Supercell ($8.6 billion), Microsoft’s acquisition of ZeniMax ($7.5 billion), and Activision’s acquisition of King ($5.9 billion).