Pokémon Go developer may sell gaming business for $3.5 billion to Saudi Arabia's Scopely
Niantic, the developer of the popular Pokémon Go game, is in talks to sell its gaming business to Scopely, the publisher of Monopoly Go! for around $3.5 billion. Scopely is owned by a Saudi Arabian investment fund.
Here's What We Know
According to Bloomberg, the deal is not yet finalised, and both companies declined to comment. If the sale goes through, Scopely will acquire the rights to Pokémon Go, as well as other Niantic games, including Monster Hunter Now, Pikmin Bloom, and Ingress.
Despite the success of Pokémon Go, Niantic has not been able to replicate it with other projects, which has led to staff reductions. The company has always positioned itself as a technology firm interested in developing AR and VR technologies.
Scopely is known for the game Monopoly Go!, one of the biggest hits on mobile devices in 2023. In 2023, Scopely was acquired by Savvy Games Group, part of the Saudi Arabian Public Investment Fund (PIF), for $4.9 billion.
Savvy Games Group has significant stakes in other major companies such as EA, Take-Two, Embracer, and Nintendo. Saudi Arabia's investment in the gaming industry is part of the country's strategy to diversify its economy. PIF is chaired by Prince Mohammed bin Salman, who is accused by the CIA of murdering journalist Jamal Khashoggi and supports strict human rights laws in the country.
Savvy's CEO, Brian Ward, has announced his intention to acquire a "leading" mobile game through Scopely, viewing it as the "tip of the spear" for investment in the mobile market. In August 2024, Niantic and Savvy signed a memorandum of understanding to expand Pokémon Go's presence in the Middle East.
Source: Bloomberg
