Niantic in Talks to Sell Pokémon Go Division for $3.5 Billion

Niantic, the developer behind the hit AR game Pokémon Go, is reportedly in discussions to sell its gaming division to Scopely, a mobile game developer owned by Saudi Arabia’s Savvy Games Group (via Bloomberg).

The proposed transaction is valued at approximately $3.5 billion, according to sources familiar with the matter.

Launched in 2016, Pokémon Go became a global sensation, integrating virtual gameplay with real-world exploration and achieving over 500 million downloads in its first year. Despite this monumental success, Niantic has faced challenges in replicating the game’s popularity with subsequent releases.

n recent years, Niantic has expanded its focus beyond gaming, developing tools to capture and share 3D scans of real-world locations. The data collected through its applications has contributed to the creation of a large geospatial model, utilizing machine learning to understand and connect various scenes globally.

Scopely, known for developing and publishing a variety of mobile games, was acquired by Savvy Games Group in July 2023 for $4.9 billion. Savvy Games Group, wholly owned by Saudi Arabia’s Public Investment Fund (PIF), has been actively investing in the gaming sector as part of Saudi Arabia’s Vision 2030 initiative, aiming to diversify the nation’s economy beyond oil revenues.

In 2022, Savvy announced plans to invest $37.8 billion in the gaming industry, allocating $13.3 billion for the acquisition and development of leading game publishers and developers. This initiative aims to create 39,000 jobs, establish 250 gaming companies, and contribute 50 billion riyals to Saudi Arabia’s GDP.

Representatives from Niantic and Scopely have declined to comment on the ongoing discussions. While the deal is not yet finalized and could still fall through, an official announcement may be forthcoming in the next few weeks.