Monopoly Go-maker Scopely is moving for majority control of Istanbul-based Loom Games, as it deepens its push into high-growth mobile titles, according to a press release.

The details: The California-based group — which the PIF’s Savvy Games acquired for USD 4.9 bn in 2023 — struck a definitive agreement that values the startup at over USD 1 bn, including earnouts and futures performance-related payouts, co-CEO Javier Ferreira told the Financial Times.

The move brings the studio behind the viral puzzle hit Pixel Flow into the Savvy Games Group fold, which already includes Scopely, Niantic’s gaming division, and ESL Faceit. Loom founders Kübra Gündoğan and Emre Çelik will continue to run the studio, which they founded just last year.

Why it matters

The company is dipping its toes into Turkey’s bustling mobile games market in a bid to diversify its top games lineup and close the gap with the world’s top publisher Tencent.

Not an isolated play: Savvy is also reportedly in late-stage talks to buy Shanghai-based Moonton Technology from ByteDance for USD 6-7 bn as early as this quarter, in what would mark another sizable expansion of its global gaming footprint.

Besides acquisitions, Scopely is also investing “significant amounts of capital” in developing new games in-house, Ferreira told the salmon-colored paper.

Zooming out

The moves come amid slowing growth in the mobile games market. The industry’s growth slowed to 2.9% last year amid slower smartphone sales and fierce competition from other mobile entertainment apps such as TikTok.

Scopely was unfazed: The company logged north of USD 4 bn in revenue last year, with its sales growing by an annual compounded rate of 50% since the PIF’s acquisition, Ferreira said. Growth came primarily on the back of Monopoly Go — which reached USD 6 bn in total player spending last year — and Niantic’s Pokémon Go.

ADVISORS- Skadden, Arps, Slate, Meagher & Flom, and Hergüner Bilgen Üçer provided counsel to Scopely. Aream & Co is the financial advisor to Loom Games, with KECOS and Fenwick & West providing counsel.

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