Niantic Nears $3.5 Billion Deal to Sell Pokémon Go to Saudi-Owned Scopely

Niantic, the maker of the extremely successful augmented reality game Pokémon Go, is selling its gaming division to mobile gaming giant Scopely for $3.5 billion. The acquisition includes some of Niantic’s most successful games, such as Pokémon Go, Pikmin Bloom, and Monster Hunter Now, along with other applications and interactive experiences. The deal also brings more than 2,300 employees from Niantic’s gaming division to Scopely.
Pokémon Go, released in 2016, has been a global phenomenon, pioneering the use of augmented reality in mobile gaming. The game has remained popular, with over 100 million players annually and a top position in the mobile gaming charts since its release. Its social component has been a huge part of its success, with millions of individuals participating in associated festivals and events across the world.
Niantic’s sale of its gaming business comes after the company’s failure to replicate the success of Pokémon Go with other games. Despite the company’s initial success with games like Ingress and Pokémon Go, Niantic has had to confront slower-than-expected growth in the AR market, as well as the impact of the COVID-19 pandemic. The company has laid off hundreds of employees and some high-profile projects have also been canceled, such as NBA, Harry Potter, and Marvel-themed games.
After the acquisition, Niantic will focus its energy on the geospatial AI business at a new firm called Niantic Spatial Inc., to be led by CEO and founder John Hanke. The new company will focus on building real-world 3D maps and unlocking spatial intelligence through machine learning. Niantic Spatial will continue with games like Ingress Prime and Peridot, which will be applications of its geospatial platform.
Scopely, which has a track record of creating popular games such as Monopoly Go and Marvel Strike Force, has plenty of experience building and operating live services and working with major intellectual properties. Scopely is committed to keeping Niantic’s games true to their core and continuing to support them over the long term. Scopely was acquired by Saudi Arabia Public Investment Fund subsidiary Savvy Games Group in 2023 for $4.9 billion, and the acquisition is a continuation of its efforts to further bolster its portfolio with category-defining games.
The acquisition is subject to standard closing conditions and regulatory approval, and the deal will close in 2025. As part of the deal, Niantic will also issue an additional $350 million in cash, totaling approximately $3.85 billion for Niantic equity holders. Scopely’s investment in Niantic Spatial involves a $50 million investment to support its geospatial AI endeavors.
This acquisition is a big shift in the mobile gaming environment, and Scopely is incorporating some of the longest-lasting and most well-liked AR games into its fold. This purchase reflects the growing appeal of AR gaming and the strategic interest in acquiring successful games to advance a company’s position in the market.