Pokémon Go maker Niantic is reportedly planning to sell the game. A Bloomberg report citing several people familiar with the discussions (who remained anonymous) claimed that the developer of the popular game is in negotiations to sell its video game business to Saudi Arabia-owned Scopely Inc. in a $3.5 billion deal. This deal, which could be announced in the coming weeks, may include the Pokémon title and other mobile games, the report noted.
Niantic’s journey with Pokemon Go
Launched in 2016, Pokémon Go became a global sensation, but Niantic struggled to replicate its success, leading to staff cuts and project cancellations in 2022 and 2023. Its Harry Potter: Wizards Unite game was also shut down in 2022.
Originally spun off from Alphabet-parent Google in 2015, Niantic was founded by CEO John Hanke, who previously worked in satellite mapping and led Google’s Geo product division.
Pokémon Go, which Niantic claims to be the most downloaded and profitable augmented reality app to date, encouraged players to explore their surroundings using an interactive map to find iconic characters.
Based in San Francisco, Niantic also develops tools for capturing and sharing 3D scans of real-world locations. In November 2024, the company revealed that data from its apps had contributed to a “large geospatial model” designed to use machine learning to analyse and connect scenes on a global scale.
Scopely, a mobile game developer, is owned by Saudi Arabia’s Public Investment Fund subsidiary, Savvy Games Group. Savvy acquired Scopely for $4.9 billion two years ago.
In 2024, Savvy CEO Brian Ward told Bloomberg that the company aimed to add a “genre-leading” mobile game to its portfolio through Scopely, which plays a key role in its mobile gaming strategy.
In August, Niantic partnered with Savvy to expand its presence in Saudi Arabia, the UAE, and Egypt.
Savvy’s investments align with the Saudi Public Investment Fund’s broader initiative to diversify the country’s economy by investing in the gaming industry.