Pokemon Go developer Niantic is reportedly in talks to sell its games division to Scopely Inc, owned by Saudi Arabia, for approximately $3.5 billion. This follows Scopely’s acquisition by Savvy Games, another Saudi-owned entity, for $4.9 billion in 2023.
According to recent reports, an announcement regarding the deal may come within the next few weeks, although a formal agreement has yet to be established, leaving the future of the deal uncertain. The focus of the sale is specifically on Niantic’s games division, which includes the immensely popular Pokemon Go. Both Niantic and Scopely have chosen not to comment on the ongoing discussions.
This potential acquisition arises as Niantic faces challenges expanding its portfolio beyond Pokemon Go. The company previously shut down its Harry Potter mobile game in 2021 and undertook significant layoffs in 2023, following the cancellation of a Marvel game and the closure of NBA All-World.
Saudi Arabia has been actively investing in the gaming sector, reportedly aiming to inject $38 billion into video game companies over the last couple of years. The acquisition of Niantic’s games division would represent one of the country’s most substantial investments as it seeks to diversify its economic ventures.
In recent announcements, Niantic revealed its use of Pokemon Go player data to develop a real-world navigation AI, while ensuring that such data would not be utilized for military purposes. The company also partnered with Major League Baseball to introduce themed PokeStops in stadiums, enhancing the gaming experience during the baseball season.
