In a significant move within the gaming industry, Niantic, the developer behind the popular augmented reality game Pokémon GO, officially announced on Wednesday that it has agreed to sell its gaming division to Scopely, a company owned by Saudi Arabia’s Public Investment Fund (PIF), for $3.5 billion.
Further, Niantic is distributing an additional $350 million of cash as part of the deal, yielding approximately $3.85 billion for Niantic equity holders.
Details Of The Acquisition
The transaction encompasses Niantic’s entire game development teams and beloved games, including the critically acclaimed “Pokémon GO”, “Pikmin Bloom”, and “Monster Hunter Now.”
Additionally, real-world community-building apps and services like Campfire and Wayfarer are part of the deal, as is the global roster of community gatherings that support these games, including Pokémon GO live events.
This acquisition is set to bolster Scopely’s reach, expanding its audience to over 500 million players globally.
Scopely’s Expansion and Saudi Arabia’s Gaming Ambitions
Scopely, one of the largest and fastest-growing companies in mobile games, is known for popular titles like “MONOPOLY GO!” and “MARVEL Strike Force.”
In 2023, the Saudi PIF-backed Savvy Games Group acquired Scopely. This latest acquisition by Scopely aligns with Saudi Arabia’s broader strategy to become a global gaming hub.
“Scopely has always been focused on cultivating meaningful communities through a shared love of play, and the Niantic games organization is one of the best in the world at this endeavor.
We are extremely inspired by what the team has built over the last decade, delivering innovative experiences that captivate a vast, enduring global audience and get people out in the real world.
We look forward to further accelerating the team’s creativity through our partnership,” Tim O’Brien, Chief Revenue Officer and Board Member of Scopely, said in a statement.
Scopely said the Niantic games business had over 30 million monthly active players (MAU) and earned more than $1 billion in revenue in 2024.
With “Pokémon GO” ranking as a top 10 mobile game every year since its launch nearly a decade ago, it continues to be a global sensation with over 100 million unique players in 2024.
Niantic’s Strategic Shift
Meanwhile, following the sale, Niantic plans to shift its focus towards geospatial artificial intelligence (AI) by spinning off its pioneering geospatial AI business into a new entity named Niantic Spatial Inc. to be led by the current CEO John Hanke.
This latest venture aims to build spatial intelligence to help people understand better, navigate, and engage with the physical world, thereby marking a strategic shift from game development to technological innovation.
Impact On Pokémon GO And Niantic’s Team
With more than 20 million weekly active players, Pokémon GO has remained a top 10 mobile title every year since its launch in 2016.
It attracted over 500 million players in its first year and generated approximately $7.9 billion in revenue since its release.
“Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely,” John Hanke, founder and CEO of Niantic said in a news release.
“Scopely shares our focus on building and operating incredible live services, has exceptional experience working with the world’s biggest and most beloved intellectual properties, and cares deeply about its player communities and game-making teams.
I firmly believe this partnership is great for our players and is the best way to ensure that our games have the long-term support and investment needed to be ‘forever games’ that will endure for future generations.”
Future Prospects
The acquisition is currently awaiting regulatory approval.
This marks a strategic shift toward geospatial AI for Niantic, while Scopely’s expanded portfolio highlights its commitment to providing immersive mobile gaming experiences.
