Niantic Inc., the creator of the hit augmented reality game Pokémon Go, is in advanced negotiations to sell its video-game business to Scopely Inc., a mobile game developer owned by Saudi Arabia’s Public Investment Fund. The deal, valued at around $3.5 billion, is expected to be finalized in the coming weeks, with the acquisition likely to include the Pokémon Go franchise and other mobile games developed by Niantic.
Originally spun out from Google in 2015, Niantic gained global recognition with Pokémon Go, which revolutionized mobile gaming by encouraging users to explore real-world locations through augmented reality. Despite the game’s massive success, Niantic has struggled to maintain that momentum, resulting in staff cuts and the cancellation of several games, including the Harry Potter: Wizards Unite project, which was shut down in 2022.
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Scopely, owned by Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund, is positioning itself as a key player in the mobile gaming market. Acquired by Savvy for $4.9 billion in 2022, Scopely has been expanding aggressively, with Savvy CEO Brian Ward indicating that the company aims to lead in mobile gaming through strategic acquisitions like this potential deal with Niantic.
This acquisition is part of Saudi Arabia’s larger strategy to diversify its economy, with the Public Investment Fund focusing on the gaming sector as a key area for growth. The potential deal also builds on a previous agreement between Niantic and Savvy Games in 2024, which sought to expand Niantic’s presence in Saudi Arabia, the UAE, and Egypt.
As discussions continue, the sale of Niantic’s video game business to Scopely could mark a pivotal moment in the gaming industry, particularly for Saudi Arabia’s increasing influence in the global gaming landscape.
