Niantic Inc., known for its blockbuster game Pokémon Go, might sell its gaming division to Scopely Inc., a company backed by Saudi Arabia, according to sources familiar with the talks.
An announcement could come soon, possibly revealing a price around $3.5 billion. This deal would include Pokémon Go and other mobile games, though the final agreement is not guaranteed.
Pokémon Go took the world by storm when it launched. Niantic has struggled to replicate that success recently, leading to layoffs and the cancellation of several projects, including Harry Potter: Wizards Unite, which ended in 2022.
Both Niantic and Scopely have chosen not to comment on the situation. Scopely is owned by Savvy Games Group, which is part of Saudi Arabia’s Public Investment Fund.
Niantic started as a spin-off from Google in 2015. Its founder, John Hanke, previously worked in satellite mapping. Pokémon Go encouraged people to explore their neighborhoods in search of beloved Pokémon characters using augmented reality.
It remains the most downloaded and profitable augmented reality app ever created, highlighting its remarkable impact on mobile gaming.
Beyond gaming, Niantic develops tools for capturing and sharing 3D scans of real-world places. The data from its apps contributes to a vast geospatial model that harnesses machine learning to connect different scenes globally.
Scopely, which was acquired for $4.9 billion two years ago, aims to enhance its games portfolio with a “genre-leading” mobile title as part of its mobile investment strategy.
Recently, Niantic partnered with Savvy to expand its footprint in Saudi Arabia, the UAE, and Egypt, aligning with Saudi Arabia’s broader goal to diversify its economy through investments in the video game sector.
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Bloomberg, Saudi Arabia, Savvy Games Group, Niantic, mobile games
