'Pokemon Go' maker Niantic to sell game division to Saudi-owned Scopely for $3.5 billion

Reuters

Wed, Mar 12, 2025, 9:59 AM 2 min read

(Reuters) - Niantic Labs said it would merchantability its video-game part to Saudi Arabia-owned Scopely for $3.5 billion, arsenic the U.S. augmented world steadfast shifts absorption to geospatial exertion aft failing to recreate the occurrence of its 2016 smash deed "Pokemon Go."

The deal, announced connected Wednesday, besides advances Saudi Arabia's ambitions to go the "ultimate planetary hub" for gaming. The kingdom's sovereign wealthiness fund, via Savvy Games, bought Scopely for $4.9 cardinal successful 2023 arsenic portion of a broader propulsion by the state to diversify beyond fossil fuels.

Niantic said it would administer an other $350 cardinal to its equity holders nether the deal. It volition besides rotation disconnected its geospatial AI concern into a caller steadfast called Niantic Spatial, which volition beryllium led by Niantic laminitis and CEO John Hanke.

Niantic Spatial volition beryllium funded with $250 cardinal of superior - $200 cardinal from Niantic's equilibrium expanse and $50 cardinal from Scopely. All of Niantic's archetypal investors volition besides proceed to beryllium shareholders of Niantic Spatial.

The determination follows respective pugnacious years for Niantic. After "Pokemon Go" became 1 of the palmy mobile games, the institution struggled to replicate its occurrence and had to laic disconnected employees successful 2022 and 2023. It besides axed the "Harry Potter: Wizards Unite" vide-game successful 2022.

For Saudi, already a increasing hub for gaming and location to the Esports World Cup, the woody builds connected a program to put astir $38 cardinal successful initiatives related to the manufacture done its Savvy Games Group.

Savvy Games is simply a large capitalist successful planetary video-game companies including Nintendo, successful which it has a involvement of astir 7.54% aft a tiny chopped successful its involvement past year.

(Reporting by Rishi Kant successful Bengaluru; Editing by Maju Samuel)