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Pokémon Go maker Niantic sells its game division to Saudi-owned Scopely
In a shocking move, Niantic Labs has announced the sale of its game division to Saudi Arabia-owned company Scopely for a staggering $3.5 billion. This monumental deal is subject to regulatory approval and other closing conditions, but if it goes through, it will be one of the biggest acquisitions in the gaming industry.
Scopely, which was founded in Los Angeles and backed by Saudi Arabia’s sovereign wealth fund, otherwise known as the Saudi Public Investment Fund (PIF), will take over Niantic’s entire portfolio of augmented reality games, including Pokémon Go, Monster Hunter Now, and Pikmin Bloom. This massive acquisition also includes social companion apps for Pokémon Go, such as Campfire and Wayfarer.
In a statement, Scopely expressed its excitement about acquiring Niantic’s exceptional team of game developers and category-leading games. The company has confirmed that it will receive the entire gamemaking team, which is expected to contribute significantly to their growing portfolio of mobile games.
However, there are some exceptions. Niantic Labs will retain two AR gaming titles, Peridot and Ingress, despite the massive sale. Scopely’s acquisition does not include these titles.
Niantic’s games division has been facing significant challenges in recent times. The company’s flagship game Pokémon Go, which once engaged over 500 million players within its first year, now struggles to maintain a user base of around 80 million monthly players. Despite attempts to replicate the game’s success with other franchises like Harry Potter and NBA basketball, no other title has been able to match the initial hype.
As a result, Niantic was forced to cancel multiple projects and lay off hundreds of employees. The company’s valuation has taken several hits, and its long-promised “real-world metaverse” remains in development hell.
If the sale goes through, Niantic will shift its focus towards building out its standalone entity Niantic Spatial, a group led by CEO John Hanke that creates real-world 3D maps.
Scopely, on the other hand, is now a major player in the gaming industry. In addition to acquiring Niantic’s game division, it has financial stakes in organizations like Nintendo, EA, and Activision Blizzard, further solidifying its position as a dominant force in the market.
The Saudi PIF has become increasingly prominent in the gaming sector, having already acquired other companies and invested in numerous others.
