Savvy Secures Scopely In The Sixth-Largest Gaming Acquisition Of All Time

Saudi Arabia's Public Investment Fund made one of the biggest acquisitions in the history of the video game industry.

What Happened: The fund, through its subsidiary Savvy Games, bought Scopely, an interactive entertainment company and mobile-first video game developer and publisher, for $4.9 billion.

According to GameSpot, the purchase puts Scopely in sixth place among the biggest video game buyouts by purchase price.

See Also: From Oil To Games: Saudi Arabia Pumps $38 Billion To Become A Video Game Hub

The only companies that have made bigger deals are Activision Blizzard Inc ATVI buying King for $5.9 billion, Microsoft Corp MSFT buying ZeniMax for $8.1 billion, Tencent Holdings ADR TCEHY buying Supercell for $8.6 billion, and Take-Two Interactive Software, Inc. TTWO buying Zynga for $12.7 billion. Microsoft's pending acquisition of Activision Blizzard for $68.7 billion would be the biggest ever.

Scopely will continue to operate independently under the Savvy banner while expanding its businesses to PC and console platforms in addition to its mobile operations.

The deal, which is subject to regulatory approval, is expected to strengthen Savvy's ability to offer new and exciting products to the global gaming community.

Scopely's co-CEOs Walter Driver and Javier Ferreira will continue to lead the company under the Savvy umbrella. The game studio has a track record of success, having worked on games in popular franchises like "Star Trek," "The Walking Dead," and with Marvel.

In a press release, Brian Ward, CEO of Savvy Games Group, said: "Scopely is one of the fastest-growing games companies today, and we have long admired their ability to build loyal, engaged player communities. At Savvy Games Group, our mission is to invest in — and grow — the global games community by inviting the best minds to join us."

Scopely's Driver stated: "Together, as one, we will be able to further expand the possibilities of play, continuing to develop beloved game experiences for players around the world. This transformational partnership is a great validation of the incredible talent of our entire Scopely team and will further accelerate our efforts to drive the games industry forward.”

Why It Matters: Recently, Saudi Arabia announced it is making a $38 billion bet on the potential of its gaming industry, as the country seeks to reduce its dependence on oil revenues.

The investment is being made by the Saudi Arabian Public Investment Fund, through Savvy Games, with the aim of establishing the country as a significant player in the global gaming market.

See also: Activision Blizzard Sees Brighter Days Ahead As Microsoft Acquisition Nears Fruition

It's also worth noting that the company has already made multibillion-dollar investments in gaming giants like Nintendo ADR NTDOY, Tencent and Activision Blizzard.

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