Niantic Inc., the creator of the 2016 global sensation Pokémon Go, is reportedly in talks to sell its video game business to Saudi Arabia-owned Scopely Inc. The potential deal, valued at approximately $3.5 billion, could be announced in the coming weeks, according to sources familiar with the matter.
If finalised, the agreement would include Pokémon Go and Niantic’s other mobile gaming titles.
Despite the massive success of Pokémon Go, Niantic struggled to replicate its popularity. In 2022 and 2023, the company cut staff and cancelled several projects in development. Due to underwhelming performance, Niantic shut down its Harry Potter: Wizards Unite game in 2022.
A sale to Scopely could significantly shift the mobile gaming landscape as the Saudi-owned company looks to expand its global gaming portfolio.
Representatives from Niantic and Scopely declined to comment on the matter. Savvy Games Group, Saudi Arabia’s Public Investment Fund subsidiary, owns Scopely.
Originally a part of Alphabet Inc.’s Google, Niantic became an independent company in 2015. Its founder and CEO, John Hanke, previously worked in satellite mapping and later led Google’s Geo product division. Pokémon Go, which became a massive hit, encouraged players to explore their surroundings using an interactive map to locate popular characters from Nintendo Co.
According to the company, the game is the most downloaded and profitable augmented reality app of all time.
The San Francisco-based company makes other products, including tools to help capture and share 3D scans of real-world locations. Data generated through its apps have contributed to a “large geospatial model,” the company announced in November. That model will “use large-scale machine learning to understand a scene and connect it to millions of other scenes globally.”
Savvy Games acquired Mobile game maker Scopely for $4.9 billion two years ago. In 2024, Savvy Chief Executive Officer Brian Ward told Bloomberg News that the company planned to add a “genre-leading” mobile title to its roster through Scopely — the “tip of the spear” for its mobile investment strategy.
In August, Niantic partnered with Savvy Games Group to support its expansion into Saudi Arabia, the United Arab Emirates, and Egypt.
Savvy is a key player in the Saudi Public Investment Fund’s broader strategy to diversify the country’s economy by investing in the video game industry.
