Our co-CEO, Walter Driver, recently sat down with Inc. Magazine to discuss his experience negotiating one of the largest games deals ever. Read the piece below, on Inc.com or in the Winter 2023/2024 issue of Inc. Magazine.
HOW SCOPELY SCORED A $4.9 BILLION SALE
Walter Driver discusses his approach to negotiating one of the largest gaming deals ever.
Scopely co-founder, chairman and co-CEO Walter Driver. Photography by Nolwen Cifuentes
When Walter Driver co-founded the mobile gaming company Scopely in 2011, he never thought that one day it would have more than 100 million monthly players. As it approached that milestone, its wildly popular games like Marvel Strike Force and Yahtzee With Buddies also caught the attention of the Saudi government-backed esports company Savvy Games. In July 2023, Savvy acquired the Los Angeles-based Scopely for $4.9 billion, making it one of the largest gaming deals ever. We spoke to Driver about growth through acquisition, and how to negotiate a multibillion-dollar deal. – As told to Kevin J. Ryan
"The discussions with Savvy Games started organically, as we were introduced by mutual friends. While we weren't actively looking to sell, we were always looking for opportunities to expand our potential. No matter how much talent you have inside your company, there's always more talent outside of it, which is why Scopely has done nine acquisitions. Savvy Games has huge ambitions and a significant amount of capital that can help us with future M&A. It wanted to challenge us to think bigger and longer-term.
We negotiated for several months. As a founder, you are so emotionally invested in the business you've built, but being emotionally reactive to new developments in the deal process is counterproductive. You need what the poet John Keats called negative capability: the ability to exist comfortably in uncertainty without trying to prematurely resolve open issues. That requires a tremendous amount of self-control. You're representing a lot of people--your partners, your employees, your investors. Try to make the right decision at every juncture without fear or desire clouding your judgment.
We signed the agreements at 3 a.m. and told our employees at 8 a.m. It was a bit surreal. We were excited that they saw the same potential that we did and that we had an opportunity to keep doing what we were doing, but on a larger scale.
The sale reiterated why it's important to talk and build relationships with the people in your space. The more time you've spent with a company in advance, the more conviction you can have that it's the right long-term partner for you. The same goes for the other company: It's making a big bet on you, and it needs to feel like it knows and trusts you. That takes time to build."