Abdelrahman
(Bloomberg) — Niantic Inc., renowned for its groundbreaking mobile game Pokémon Go launched in 2016, is reportedly engaged in negotiations to transfer its gaming division to Scopely Inc., a firm owned by the Saudi Arabian government, according to multiple sources close to the discussions.
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An announcement regarding this deal could come in the near future, with estimated discussions valuing the transaction at around $3.5 billion. This agreement would encompass not only Pokémon Go but also additional mobile gaming titles, as disclosed by sources who wish to remain anonymous due to the confidential nature of the negotiations. However, there is no guarantee that a final deal will be struck.
While Pokémon Go became a global sensation, Niantic has faced challenges in replicating that level of success, leading to staff reductions and the cancellation of several development projects during 2022 and 2023. The company also shut down its Harry Potter: Wizards Unite game in 2022.
Both Niantic and Scopely representatives have opted not to provide any comments on this matter. Scopely operates under Savvy Games Group, which is part of the Saudi Arabia Public Investment Fund.
Niantic was established as a separate entity from Alphabet Inc.’s Google back in 2015. The company’s CEO and founder, John Hanke, has a background in satellite mapping and previously led Google’s Geo product division. Pokémon Go is designed to encourage players to explore their surroundings using an interactive map to locate beloved characters from Nintendo Co.
According to Niantic, Pokémon Go currently holds the title for the most downloaded and highest-grossing augmented reality application ever created.
Based in San Francisco, Niantic is also known for creating various products, including tools that allow users to capture and share 3D scans of real-world locations. The data produced by its applications has been integral to developing a significant geospatial model, which the company announced in November. This model aims to leverage large-scale machine learning to analyze scenes and connect them to millions of other locations worldwide.
Scopely, a mobile gaming maker, was acquired for $4.9 billion two years ago by Savvy Games. In 2024, Savvy’s CEO Brian Ward shared with Bloomberg News that they plan to enhance their portfolio with a leading mobile title through Scopely, serving as a pivotal element in their mobile investment approach.
In August, Niantic entered into a partnership with Savvy to facilitate its expansion efforts in Saudi Arabia, the United Arab Emirates, and Egypt.
Savvy is aligned with the broader strategy of the Saudi Public Investment Fund to diversify the nation’s economy by investing in the gaming sector.
