In a major shift for mobile gaming, Niantic has sold its gaming division, including Pokémon GO, to Scopely for $3.5 billion. The deal, expected to close in 2025, puts one of gaming’s most recognizable AR titles under new ownership backed by Saudi Arabia’s Public Investment Fund (PIF).
Key Deal Points
- Purchase Price: $3.5 billion from Scopely plus $350 million of Niantic’s cash, creating a total value of $3.85 billion for Niantic equity holders
- Games Included: Pokémon GO, Pikmin Bloom, and Monster Hunter Now
- Saudi Connection: Scopely was acquired by Saudi Arabia’s Savvy Games Group (a PIF subsidiary) in 2023 for $4.9 billion
- Player Base: Pokémon GO maintains approximately 100 million annual players, not 30 million monthly players
Niantic’s Business Pivot
Post-sale, Niantic will transform into “Niantic Spatial Inc.,” focusing on geospatial artificial intelligence and mapping technologies. The new venture launches with $250 million in capital—$200 million from Niantic’s balance sheet and a $50 million investment from Scopely.
“The rapid progress in AI reinforces our belief in the future of geospatial computing to unlock new possibilities for both consumer experiences and enterprise applications,” Niantic stated in its press release.
Similar Posts
Player Concerns and Reassurances
Ed Wu, Pokémon GO’s director, addressed community concerns in an official statement: “I won’t say that Pokémon GO will remain the same, because it has always been a work in progress. But how we create and evolve it will remain unchanged.”
Wu emphasized Scopely’s alignment with the game‘s core mission: “With Scopely’s full commitment, experience and resources, we’re going to make Pokémon GO the very best it can be.”
Some players worry about potential changes to the game’s monetization model, as Scopely has a track record of implementing microtransactions in its titles. The company’s most successful game, Monopoly GO, has been downloaded more than 50 million times and has generated over $3 billion in revenue.
Saudi Arabia’s Gaming Expansion
This acquisition continues Saudi Arabia’s push into gaming investments. The Saudi PIF already holds stakes in Nintendo, Electronic Arts, and Take-Two Interactive. The country has also invested heavily in esports, hosting last year’s esports World Cup with a $60 million prize pool and securing the 2027 Olympic esports Games for Riyadh.
Saudi investments in sports and gaming have faced criticism due to the country’s human rights record. A 2019 UN report linked the Saudi government to journalist Jamal Khashoggi’s death, though Saudi Arabia denies responsibility.
Business Impact
The deal represents one of the largest mobile gaming acquisitions in recent years. Pokémon GO, despite launching nearly a decade ago, remains a top-grossing mobile game globally.
Niantic games have brought together more than 100 million annual players who have collectively traveled over 30 billion miles while playing. The games have established more than a billion friend connections worldwide.
Frequently Asked Questions
Yes, Pokémon GO will continue to operate. Ed Wu, the game’s director, confirmed that the core development team remains intact and that the game will continue to evolve. Scopely has expressed commitment to supporting and enhancing the game moving forward.
While specific changes haven’t been announced, some players have expressed concerns about potential changes to monetization given Scopely’s history with microtransactions in their other games. Scopely’s Monopoly GO has generated over $3 billion in revenue through its monetization model. However, Ed Wu has stressed that “how we create and evolve it will remain unchanged.”
Niantic is rebranding as “Niantic Spatial Inc.” and pivoting to focus on geospatial AI and real-world mapping technologies. This new venture launches with $250 million in capital—$200 million from Niantic’s balance sheet and $50 million from Scopely. The company will continue to operate Ingress Prime and Peridot as applications of its geospatial platform.
According to Niantic’s announcement, the deal is expected to close in 2025, pending customary closing conditions and completion of regulatory review. The transaction has been approved by the Board of Directors of both Niantic and Scopely.
Scopely is a major mobile gaming company known for titles like Monopoly GO. In 2023, Scopely was acquired by Savvy Games Group, a subsidiary of Saudi Arabia’s Public Investment Fund (PIF), for $4.9 billion. This means that with this acquisition, Pokémon GO will ultimately be owned by a company backed by Saudi investment.
Ed Wu specifically mentioned in his statement that Scopely is “in full agreement that this highly-admired program will be a priority to invest in together.” He emphasized that “the real-world community that loves Pokémon GO will remain our guiding light in all we do,” suggesting a commitment to maintaining and potentially enhancing community programs and events.