(Bloomberg) — Niantic Inc., known for the widely popular Pokémon Go launched in 2016, is reportedly negotiating a sale of its gaming division to Scopely Inc., which is owned by the Saudi Arabian government, as per multiple sources familiar with the situation.
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An announcement regarding the deal could come in the next few weeks, with discussions indicating a valuation around $3.5 billion, according to one insider. The potential agreement would encompass the Pokémon title along with other mobile games, as noted by sources who preferred to remain anonymous due to the confidential nature of the talks. However, there is no guarantee that the negotiations will result in a deal.
Pokémon Go became a global sensation, but Niantic struggled to replicate that level of success, leading to staff reductions and the cancellation of several in-development titles in 2022 and 2023. Additionally, its Harry Potter: Wizards Unite game was terminated in 2022.
Both Niantic and Scopely representatives have refrained from commenting on the situation. Scopely operates under Savvy Games Group, a division of Saudi Arabia’s Public Investment Fund.
Niantic emerged from Alphabet Inc.’s Google in 2015, led by CEO and founder John Hanke, who has a background in satellite mapping and previously directed Google’s Geo product division. Pokémon Go entices players to explore their surroundings through an interactive map to track down popular characters from Nintendo Co.
This game holds the record as the most downloaded and profitable augmented reality application in history, as stated by the company.
Based in San Francisco, Niantic also develops other technologies, such as tools designed for capturing and sharing 3D scans of real-world locations. The data gathered through its applications has contributed to a substantial geospatial model, which the company revealed in November will utilize extensive machine learning to analyze scenes and link them to millions of others globally.
Mobile gaming company Scopely was acquired by Savvy Games for $4.9 billion two years ago. In 2024, Savvy’s CEO Brian Ward informed Bloomberg News that adding a “genre-leading” mobile title through Scopely was central to their mobile investment strategy.
In August, Niantic entered into a partnership with Savvy aimed at expanding into Saudi Arabia, the UAE, and Egypt.
Savvy plays a role in the Saudi Public Investment Fund’s broader strategy to diversify the economy by investing in the gaming sector.
