'Pokemon Go' creator wants to sell gaming division for $3.5B
What's the story
Niantic, the maker of global phenomenon Pokemon Go, is in advanced talks to sell its gaming division to Saudi Arabia-owned Scopely. The deal, if it goes through, could be worth some $3.5 billion and may not just involve the Pokemon title but also other mobile games from Niantic. However, there's no guarantee as both parties have declined to comment on the ongoing negotiations.
Company history
Niantic's journey and challenges in the gaming industry
Niantic became an independent company from Google in 2015, under the leadership of its CEO and founder, John Hanke. The company became a household name with Pokemon Go, an AR game that prompted players to step out and find popular Pokemon characters. However, despite the success, Niantic struggled to replicate its initial success and had to lay off staff and cancel some projects in 2022 and 2023.
Buyer profile
Scopely's acquisition history and expansion plans
Two years ago, mobile game developer Scopely was acquired by Savvy Games for $4.9 billion. In 2024, Savvy CEO Brian Ward unveiled plans to add a "genre-leading" mobile title to its portfolio via Scopely. This acquisition is viewed as part of the Saudi Public Investment Fund's bigger strategy to diversify its economy by investing in the video-game industry.
Past partnership
Niantic and Savvy's previous collaboration in Middle East
Back in August 2024, Niantic had signed an agreement with Savvy to help it expand into Saudi Arabia, the United Arab Emirates, and Egypt. The partnership was a major step in Niantic's growth strategy in the Middle East region. The latest negotiations for a potential sale further highlight the developing relationship between the two players in the global gaming industry.