Niantic Labs Sells Gaming Division to Saudi-Owned Scopely for $3.5 Billion
Niantic Labs, the creator of popular mobile games such as Pokémon Go, has announced the sale of its video game division to Scopely, a mobile developer owned by Saudi Arabia, for $3.5 billion. The deal includes the transfer of several high-profile gaming titles, including Pokémon Go, Monster Hunter Now, and Pikmin Bloom.
John Hanke, CEO of Niantic, expressed optimism about the acquisition, stating that the partnership with Scopely will benefit players and ensure long-term support for the games. The deal, which is still subject to regulatory approval and other closing conditions, will see Scopely acquire Niantic’s team of game makers and leading games, as well as social companion apps for Pokémon Go, such as Campfire and Wayfarer.
Niantic, which saw tremendous success with Pokémon Go attracting over 500 million players in its first year, has faced challenges in recent years. The game’s popularity declined during the 2020 global COVID-19 lockdowns, leading to project cancellations and the layoff of at least 310 employees between 2022 and 2023.
This acquisition is part of Saudi Arabia’s broader strategy to expand its presence in the gaming industry. The Saudi Public Investment Fund (PIF) has been actively acquiring stakes in major gaming companies, including Nintendo, Activision Blizzard, and EA. In 2021, the PIF established Savvy Games Group, which subsequently acquired Scopely for $4.9 billion in 2023.
For Scopely, this deal aligns with its plans for a significant acquisition involving a global franchise with substantial revenue potential. The company’s chief revenue officer had previously hinted at a “megadeal” expected to generate at least a billion dollars in revenue. Niantic’s gaming business reportedly generated $1 billion in revenue last year, with Pokémon Go alone contributing an estimated $7.9 billion since its launch in 2016.
As the gaming industry continues to evolve, this acquisition marks a significant shift in the mobile gaming landscape, potentially reshaping the future of popular augmented reality games and their development.
