Niantic Rumored to Explore Sale of Video Game Unit

Niantic, the creator of the popular augmented reality game Pokémon Go, is reportedly negotiating a potential $3.5 billion sale of its video game division to Scopely, a Saudi-owned gaming company. This information, initially reported by Bloomberg, suggests the sale would encompass Pokémon Go, the globally successful mobile game that integrates real-world locations into its gameplay.

According to an anonymous source cited by Bloomberg, while the deal isn't finalized, a confirmation could arrive within weeks if approved. Niantic, Scopely, and its parent company, Savvy Games Group, have declined to comment publicly on the reported acquisition.

The potential acquisition follows Savvy Games Group's April 2023 purchase of Scopely for $4.9 billion, an acquisition spurred by the Saudi Arabian government's stated intention to acquire a leading games publisher. Scopely's portfolio includes prominent mobile games such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Further demonstrating its ambition in the gaming sector, Savvy Gaming Group also acquired ESL and FACEIT, two major esports organizations, for a combined $1.5 billion in 2022. Crown Prince Mohammed bin Salman bin Abdulaziz articulated the Saudi government's broader strategy, aiming to establish Saudi Arabia as a global leader in gaming and esports by 2030, leveraging the industry to diversify the national economy and foster innovation.