Niantic, the company behind the sensational game, Pokemon Go, is reportedly in advanced discussions to sell its gaming unit to Scopely, which is a mobile gaming company owned by Saudi Arabia’s Savvy Games Group.
Sources familiar with the deal suggest that the transaction could be valued at around $3.5 billion and may be finalized in the upcoming weeks.
The possible deal would include Pokemon Go and other mobile titles under Niantic’s portfolio. However, discussions about this deal remain private and there’s no guarantee an agreement will be reached.
Scopely was acquired for $4.9 billion in 2023 by Savvy Games Group, which is a subsidiary of Saudi Arabia’s Public Investment Fund (PIF). PIF has been aggressively investing in gaming as part of Saudi Arabia’s strategy to diversify its economy.
In August 2024, Niantci signed a deal with Savvy to expand in the Middle East countries like Saudi Arabia, the UAE, and Egypt. If the acquisition goes through, Pokemon Go could revive the trend in Saudi Arabia’s gaming landscape.
Struggles Beyond Pokemon Go
Since launching Pokemon Go in 2016, Niantic has struggled to replicate its massive success. The company faced setbacks, including layoffs and the cancellation of multiple projects in 2022 and 2023. Its ‘Harry Potter: Wizards Unite’ game shut down in 2022 due to low engagement.
Despite these challenges, Pokemon Go remains the most downloaded and highest-earning augmented reality game. The game’s interactive map encouraged players to explore real-world locations to catch Pokemon.
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