Niantic in Talks to Sell to Saudi-Owned Firm

Niantic, the developer behind the popular augmented-reality game Pokémon Go, is reportedly in discussions to sell its video game division to Scopely, a company owned by Saudi Arabia's Savvy Games Group, for a staggering $3.5 billion. According to Bloomberg, this potential sale would encompass Pokémon Go, the beloved mobile game that encourages players to explore the real world in search of Pokémon.

An anonymous source speaking to Bloomberg revealed that, although the deal is not yet finalized, it could be confirmed within weeks if all goes as planned. Neither Niantic, Scopely, nor Savvy Games Group has offered public comments on the speculated acquisition.

This move comes on the heels of Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, following the Saudi government's announcement of their intent to purchase a leading games publisher. Scopely is known for publishing several successful mobile games, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Additionally, Savvy Games Group made headlines in 2022 by acquiring two of the world's largest esports companies, ESL and FACEIT, for a combined $1.5 billion. These strategic purchases align with Saudi Arabia's broader vision to become a global hub for the gaming and esports industry by 2030.

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz emphasized the country's ambitions, stating, "Savvy Games Group is one part of our ambitious strategy aiming to make Saudi Arabia the ultimate global hub for the games and esports sector by 2030. We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation in the sector, and further scale the entertainment and esports competition offerings across the Kingdom."