Pokémon GO Developer Niantic Ready to Sell Games in $3.5bn Deal to Saudi-owned Scopely
Niantic, the developer of Pokémon GO, is reportedly ready to sell its game division to Saudi Arabia-owned Scopely. The potential deal is set to be finalized in the coming weeks.
Pokémon GO developer Niantic is set to sell its game division to Saudi Arabia-owned Scopely in a deal worth $3.5bn. The news comes from a report by Bloomberg that says a potential deal could be only weeks away.
Niantic has failed to add to the massive success of 2016’s Pokémon GO, ending the development of several games in 2022 and 2023, and shutting down the mobile game Harry Potter: Wizards Unite in 2022.
Niantic’s Strategic Shift
Since the launch of Pokémon GO in 2016, Niantic has let go more than 8% of its workforce following failed projects, including NBA and Marvel games. While it’s the most profitable augmented reality app ever, Niantic may wish to focus on its “large geospatial model.”
Niantic’s shift tends to have started last year when the company partnered with Savvy, a subsidiary of the Saudi Public Investment Fund and the parent company of Scopely, to expand into Saudi Arabia, Egypt, and the United Arab Emirates.
Scopely’s Expansion Plans
Savvy bought Scopely, which owns Marvel Strike Force, Scrabble GO, Monopoly GO, and WWE Champions in 2023 for $4.9bn. After its acquisition, Savvy Chief Executive Officer Brian Ward announced plans to add “genre-leading” mobile titles to its catalog.
Integrating popular titles like Pokémon GO could provide Scopely with a substantial user base and new revenue streams while diversifying and strengthening its position in the mobile gaming market.
Implications for the Gaming Industry
For Niantic, the deal may be too good to turn down, with the company that started within Google looking to further develop its AI that powers Pokémon GO. A deal for Scopely highlights the company’s ambitions to expand its portfolio and reach globally.
While a deal is reportedly only weeks away, it’s still not a foregone conclusion. However it will be interesting to see how Niantic evolves its spatial intelligence technology without a gaming focus.
Conclusion
A prospective $3.5 billion deal between Niantic and Scopely is only weeks away. A deal will see the Saudi Arabia-owned video games company acquire Pokémon GO. What do you think of the deal? Let us know in the comments.
Fueled by a passion for gaming and the ever-evolving world of gaming news, Daniel loves connecting with seasoned and new players to bring games to life on the page, exploring their narratives and gaming trends. A self-published fiction and fantasy author, Daniel has nearly 20 years of experience writing gaming news and a love for storytelling that drives his enthusiasm to deliver breaking news, in-depth analysis, and industry innovations. You will find him in-game as "Windfell."
Download the Allkeyshop Browser Extension Free
For all the latest video game news, trailers, and best deals, make sure to bookmark us.
You can find all the best and cheapest online deals on CD keys, game codes, gift cards, and antivirus software from the verified CD key sellers on our store pages.
To not miss any news on Allkeyshop, subscribe on
Google News
.
MORE RELEVANT ARTICLES
