Niantic, the creator of the world’s most downloaded and profitable game, Pokémon Go, has begun negotiations to sell its gaming division to mobile game developer and publisher Scopely for $3.5 billion. Scopely was acquired by Savy Games, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), for $4.9 billion in 2023.
Founded within Google in 2010, Niantic focused on augmented reality (AR) and location-based mobile games. In 2015, it became an independent company and revolutionized the mobile gaming industry with the release of Pokémon Go in 2016. The game encouraged players to go outside and catch Pokémon, quickly becoming a global success with over a billion downloads. However, Niantic has struggled to replicate the success of Pokémon Go. The AR game Harry Potter: Wizards Unite, released in 2019, was unsuccessful and shut down in 2022.
Following this, Niantic began laying off employees and canceling several game projects. While continuing its work on AR technology, the company is now in talks to sell its gaming division to Savy Games.
In August 2023, Niantic signed a partnership agreement with Savy Games to expand in Saudi Arabia, the UAE, and Egypt. If the deal is finalized, the $3.5 billion acquisition could be announced to the public in the coming weeks.
