**Scopely’s Successful Acquisition of Savvy Games Group: A Year in Review**
In the highly competitive game industry, ambitious moves can lead to significant success. One such example is the acquisition of Scopely, a mobile game publisher, by Savvy Games Group. Backed by Saudi Arabia’s Public Investment Fund, Savvy acquired Scopely for a whopping $4.9 billion. While some may have questioned the high price tag, Scopely’s mobile game Monopoly Go proved to be a massive hit, generating $2 billion in revenues within its first 10 months.
A year after the acquisition, an interview was conducted with Brian Ward, CEO of Savvy Games Group, to discuss the consequences of taking risks and being ambitious in the industry. Ward emphasized the importance of allowing Scopely to operate independently and freely, ensuring that the employees felt minimal interference from Savvy. This approach has been successful, as the employees have reported high satisfaction with the level of autonomy they enjoy.
Looking at the state of the industry, Ward shared insights from his banker friends, who indicated that there is an increase in opportunities for funding and initial public offerings (IPOs). This surge in sector activity suggests a positive trajectory for the game industry.
Scopely’s co-CEOs, Walter Driver and Javier Ferreira, also expressed optimism about the industry’s future during an interview at the GamesBeat Summit 2024 event. With Scopely now integrated with Savvy and having a strong M&A team, the company aims to continue finding great products, teams, and studios to add to its portfolio.
Regarding capital deployment and growth ambitions, Ward stated that Savvy primarily focuses on supporting Scopely’s strategic capital initiatives. However, he emphasized that there is no preference for one area over another, as Savvy remains committed to game development and publishing, esports, and building Saudi Arabia into a global games hub.
Esports, in particular, has been a significant area of focus for Savvy in the first year following the acquisition. With a 40% market share in esports, Savvy aims to explore opportunities on the technology side, such as digital platforms. The increasing capital inflow into esports has made it a less volatile industry, attracting longer-term agreements with publishers, sponsors, and advertisers.
The interview also touched upon concerns related to Saudi Arabia’s reputation, including issues surrounding LGBTQ+ rights. Ward acknowledged that change takes time but emphasized the rapid pace of cultural transformation happening in the country. He highlighted the efforts made by the organizers of the Esports World Cup to ensure that everyone feels welcome and accepted. Ward expressed his belief that progress is being made and that further changes will continue to occur.
In terms of creating jobs in Saudi Arabia, Savvy Games Group recognizes the importance of offsetting the country’s dependence on oil. While acquisitions like Scopely do not directly create jobs on the ground, Ward emphasized that this year, they are focusing on building the Saudi Arabian ecosystem. This involves working with government ministries to provide financial incentives for foreign investment, supporting local entrepreneurs through incubation and acceleration programs, and developing training and vocational programs to equip the population with the necessary skills for the industry.
Esports events held in Saudi Arabia, such as GAMERS8 and the upcoming Esports World Cup, play a vital role in attracting visitors to the country and educating stakeholders about the potential of the gaming sector. These events also contribute to the overall mission of bringing people together through games and promoting peace.
Looking ahead, Savvy Games Group remains open to further investments and acquisitions in the mobile game industry. While Monopoly Go’s success was exceptional, Ward emphasized that it should not set unrealistic expectations for future growth. Finding other talented teams and studios is crucial to sustaining growth and expanding the company’s portfolio.
Overall, the past year has been a remarkable journey for Savvy Games Group and Scopely. The successful acquisition and the subsequent achievements of Monopoly Go have solidified Savvy’s position in the industry. With continued focus on game development, esports, and building the Saudi Arabian gaming ecosystem, Savvy Games Group is well-positioned for future success.