Scopely Acquires Niantic's Gaming Division, Including Pokémon Go, for $3.5 Billion

Niantic is set to sell its video game business to Scopely for $3.5 billion, a move underscoring Saudi Arabia's growing investment in the gaming industry. With Pokémon Go retaining over 20 million active users weekly, the acquisition promises to enhance Scopely's gaming offerings.

Niantic, the powerhouse behind the wildly popular game Pokémon Go, announced on Wednesday its decision to sell its video game business to Scopely for a staggering $3.5 billion. Scopely, which is owned by the Saudi sovereign wealth fund, continues to expand its influence within the gaming landscape following its own acquisition in 2023.

First released in 2016, Pokémon Go took the world by storm, inspiring millions to step outside and embark on augmented reality adventures. From city streets to remote islands, players caught Pokémon, building a strong community around the iconic franchise. The game currently boasts over 20 million active weekly players, generating substantial revenue that contributes to Scopely's ambitions.

In a statement released alongside the acquisition news, Scopely, headquartered in Culver City, California, affirmed that it plans to integrate all Niantic gaming staff into its organization. This strategic move reflects Scopely’s growth trajectory, following its acquisition by Savvy Games Group for $4.9 billion last year, a firm established by Saudi Arabia's Public Investment Fund as part of its expansive gaming strategy.

Saudi Arabia aims to invest a remarkable $38 billion in the gaming sector by 2030, harnessing the Public Investment Fund—which oversees nearly a trillion dollar portfolio—to diversify its economy and reduce its reliance on oil. This latest deal continues a trend of substantial investments in gaming and e-sports, with critics arguing that such investments aim to improve Saudi Arabia's global image amid ongoing human rights scrutiny.

As the landscape of the gaming industry evolves, Scopely's acquisition of Niantic emphasizes the growing significance of augmented reality experiences in mobile gaming and highlights the burgeoning role of the Saudi sovereign fund within this lucrative market.