Saudi’s Scopely Acquires Pokémon GO Creator’s Game Division for $3.5B

Niantic, the company behind Pokémon GO, has sold its gaming division to Saudi-owned Scopely in a $3.5 billion transaction. The deal includes Pokémon GO, Pikmin Bloom, Monster Hunter Now, and supporting platforms such as Campfire and Wayfarer. As part of the agreement, Niantic will distribute an additional $350 million to its equity holders, bringing the total deal value to $3.85 billion.

Following the sale, Niantic will transition into geospatial AI technology under a new company, Niantic Spatial, led by founder and CEO John Hanke. The newly formed entity will receive $250 million in funding, with $200 million from Niantic’s balance sheet and $50 million from Scopely. Existing Niantic investors will remain shareholders in Niantic Spatial.

Scopely, a mobile gaming company acquired by Saudi Arabia’s Savvy Games Group in 2023 for $4.9 billion, has committed to integrating Niantic’s game development teams. Pokémon GO, which still boasts over 20 million weekly active players, will continue operating under Scopely’s management.

The deal follows Niantic’s struggles to replicate Pokémon GO’s success, leading to layoffs in 2022 and 2023 and the shutdown of projects like Harry Potter: Wizards Unite. Meanwhile, Saudi Arabia continues to expand its gaming investments, with its Public Investment Fund (PIF) allocating nearly $38 billion to gaming-related initiatives. Through Savvy Games Group, the PIF has acquired stakes in Nintendo and other major gaming firms, positioning Saudi Arabia as a growing force in the global gaming industry.