According to Bloomberg, Pokémon Go developer Niantic Inc. is in talks to sell its video game business to Saudi Arabian-controlled Scopely Inc. for $3.5 billion.
Details of the Deal
The deal would include all of the company’s mobile games, such as Pokémon Go, Pikmin Bloom, Ingress, and Monster Hunter Now. This acquisition would mark a significant shift in the mobile gaming industry, as Scopely Inc., owned by Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund, would gain control over some of the most popular augmented reality (AR) games3.
Background on Niantic Inc.
Niantic Inc. was originally a startup under Google’s umbrella before becoming an independent company in 2015. The company gained global recognition with the release of Pokémon Go in 2016, which became the most downloaded and profitable AR app of all time1. Despite its success with Pokémon Go, Niantic has faced challenges in replicating this success with other titles, leading to staff cuts and the cancellation of some projects.
Scopely Inc.’s Expansion
Scopely Inc. has been expanding its portfolio of mobile games, with notable titles like MONOPOLY GO!, Star Trek Fleet Command, and Marvel Strike Force. The acquisition of Niantic’s gaming division would further strengthen Scopely’s position in the mobile gaming market and provide new opportunities for growth and innovation3.
Future Prospects
If the deal goes through, Scopely would take over the future progression of Niantic’s games, potentially bringing new features and updates to these beloved titles. However, there are concerns about how this acquisition might affect the authenticity and direction of Niantic’s games, which have been known for their unique location-based and AR gameplay3.
For more information, you can read the full article on Bloomberg here.
