Loom Games Joins Scopely as #SaudiArabia Pushes Gaming Sector Growth - Bloomberg

Loom Games Joins Scopely as Saudi Arabia Pushes Gaming Sector Growth - Bloomberg

Saudi-owned gaming studio Scopely Inc. has agreed to take a majority stake in Turkish development studio Loom Games, as the kingdom seeks to transform itself into a video gaming hub.

The deal is worth as much as $1 billion, a figure based on Loom Games hitting certain milestones, according to a spokesperson for Scopely.

Istanbul-based Loom Games was formed last year and is the maker of mobile puzzle game Pixel Flow!, which racked up 10 million users after launching in the fall, according to a statement from Scopely on Thursday.

Loom founders Kübra Gündoğan and Emre Çelik will continue to run the approximately 20-strong studio from Turkey.

California-based Scopely focuses on mobile titles, publishing popular games including Monopoly Go! and Pokémon Go. It is owned by the gaming investment company Savvy Games Group, a subsidiary of Saudi Arabia’s sovereign wealth fund the Public Investment Fund.

Saudi Arabia is seeking to diversify its economy away from oil and has used the PIF, Savvy and Scopely to pursue an aggressive deals strategy to become influential in video gaming. About 62% of the country’s citizens consider themselves gamers, playing weekly or daily, according to data shared with Bloomberg News by Niko Partners.

Ruler and PIF chair Crown Prince Mohammed bin Salman presents himself as a modernizing force and is a self-confessed video-game fan, partial to Microsoft Corp.’s Call of Duty.

In September, Electronic Arts Inc. agreed to sell itself to a group of investors that included the sovereign wealth fund, in the largest leveraged buyout in history. The PIF is the biggest contributor to the deal, Bloomberg News previously reported.

The fund also holds a stake in Nintendo Co.

The PIF established Savvy in 2021, and appointed gaming industry veteran Brian Ward as its chief executive officer. Savvy acquired esports company ESL FACEIT group in 2022 and Scopely in 2023.

The deal is another high-profile acquisition in Turkey, which has emerged as a global powerhouse in mobile gaming thanks to developer expertise in casual games. FarmVille creator Zynga Inc. acquired Turkey’s Peak Games for $1.8 billion in 2020, while Royal Match maker Dream Games was valued at $5 billion in a funding round last year.

Middle Eastern bourses tumble on US-Iran tensions | Reuters

Middle Eastern bourses tumble on US-Iran tensions | Reuters

Gulf stock markets tumbled on Thursday as investors assessed efforts by the U.S. and Iran to de-escalate tensions through talks over Tehran's nuclear programme, even as both sides stepped up military activity in the region.

The White House said on Wednesday that this week's Geneva talks with Iran yielded modest progress, though gaps persisted on certain issues. Officials noted that Tehran is anticipated to return with additional details within the next two weeks.

According to the U.S. Federal Aviation Administration website, Iran has issued a notice to airmen announcing planned rocket launches across southern regions on Thursday between 0330 GMT and 1330 GMT.

Satellite images show that Iran has recently built a concrete shield over a new facility at a sensitive military site and covered it in soil, experts say, advancing work at a location reportedly bombed by Israel in 2024 amid tensions with the U.S.

The U.S. has positioned warships in proximity to Iran, with Vice President JD Vance stating that Washington is considering whether to maintain diplomatic talks with Tehran or explore "another option."

Saudi Arabia's benchmark stock index (.TASI), opens new tab declined 1.9%, dragged down by a 2.9% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.1% decline in the country's biggest lender, Saudi National Bank (1180.SE), opens new tab.

Gulf Cooperation Council stock markets experienced fresh selling pressure on Thursday as rising geopolitical tensions triggered risk aversion throughout the region. Markets that had earlier gained from strong fourth-quarter earnings results are now contending with mounting geopolitical uncertainties, said Milad Azar Market analyst at XTB MENA.

Dubai's main share index (.DFMGI), opens new tab tumbled 2.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 2.7% and top lender Emirates NBD (ENBD.DU), opens new tab retreating 1.9%.

Despite Dubai's strong economic growth projections and sound market fundamentals, geopolitical headwinds continue to stall the momentum needed to sustain an upward trajectory, added Azar.

In Abu Dhabi, the index (.FTFADGI), opens new tab slid 1.4%.

According to Azar, the current market volatility and possible spikes in oil prices may provide some support, their ability to meaningfully boost overall market performance is presently constrained.

The Qatari index (.QSI), opens new tab tumbled 1.6%, as almost all its constituents were in negative territory. Qatar National Bank (QNBK.QA), opens new tab was down 1.6%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 3% - its biggest intraday fall since June.