Pokémon Go developer Niantic to sell gaming business to Saudi group

Niantic Labs has announced that it’s selling its video game division to Saudi Arabia-owned mobile developer Scopely for $3.5 billion after struggling to replicate the success of Pokémon Go across its other AR games. The newly inked agreement includes Niantic’s Pokémon Go, Monster Hunter Now, and Pikmin Bloom mobile gaming titles.

“Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely,” said Niantic CEO John Hanke. “I firmly believe this partnership is great for our players and is the best way to ensure that our games have the long-term support and investment needed to be ‘forever games’ that will endure for future generations.”

The acquisition is subject to regulatory approval and other closing conditions. Should the deal go through, it will also bring Niantic’s social companion apps for Pokémon Go — Campfire and Wayfarer — under Scopely ownership. Scopely says it will gain “Niantic’s entire team of exceptional gamemakers and category-leading games.” However, the Peridot and Ingress AR gaming titles, the latter of which is also supported by the Wayfarer mapping app, will remain under the ownership and development of Niantic Spatial.

Pokémon Go attracted more than 500 million players in its first year, but its popularity was impacted in 2020 when global covid lockdowns kept people inside their homes. The company has since canceled multiple projects and laid off at least 310 employees between 2022-2023 in an attempt to “weather the current challenges in the market.”

Today’s announcement is Saudi Arabia’s latest attempt to muscle its way into the gaming industry, having used its Saudi Public Investment Fund (PIF) to acquire stakes in Nintendo, Activision Blizzard, and EA. The PIF was also used to establish Esports and gaming company Savvy Games Group in 2021, which later acquired Monopoly Go! developer Scopely for $4.9 billion in 2023.

The announcement appears to be the 2025 “megadeal” that Scopely’s chief revenue officer Tim O’Brien teased last year, saying during a Q&A that it would involve “a scaled global franchise doing hopefully at least a billion dollars in revenue.” Niantic Labs doesn’t disclose its earnings to the public, but Scopely said in its announcement that Niantic’s gaming business drove $1 billion in revenue last year, and Pokémon Go alone is estimated to have brought in $7.9 billion in revenue since launching in 2016.