Niantic Inc., the developer behind the 2016 global sensation Pokémon Go, is in negotiations to sell its video game business to Saudi Arabia-owned Scopely Inc.
A deal, valued at an estimated $3.5 billion, could be announced in the coming weeks, one source said. The agreement, if finalized, would include Pokémon Go and other mobile games. However, there is no guarantee the deal will be completed.
Despite the global success of Pokémon Go, Niantic struggled to replicate its success. The company laid off employees and scrapped several projects in 2022 and 2023, most notably shutting down Harry Potter: Wizards Unite in 2022.
Scopely is owned by Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund.
Originally spun off from Google in 2015, Niantic was founded by CEO John Hanke, who previously led Google’s Geo product division after working in satellite mapping. Pokémon Go encouraged players to explore real-world locations using an interactive map to find Nintendo Co.’s beloved characters. The company claims it is the most downloaded and profitable augmented reality app of all time.
Based in San Francisco, Niantic also develops technology for capturing and sharing 3D scans of real-world environments. In November, it announced that data from its apps has contributed to a large-scale geospatial model designed to understand and connect scenes worldwide using machine learning.
Scopely was acquired for $4.9 billion in 2023 by Savvy Games. In 2024, Savvy CEO Brian Ward told Bloomberg News that the company aimed to acquire a “genre-leading” mobile title through Scopely, positioning it as the focal point of its mobile gaming strategy.
In August, Niantic partnered with Savvy to expand its presence in Saudi Arabia, the United Arab Emirates, and Egypt. The investment is part of the Saudi Public Investment Fund’s broader strategy to diversify the nation’s economy through the video game industry.
