Saudi Arabia’s Scopely, a video game development and publishing company owned by the Public Investment Fund (PIF), is in talks to acquire the gaming division of Niantic, the developer behind Pokémon GO.
According to media reports, the deal to purchase Niantic’s gaming unit, which specializes in augmented reality (AR) mobile games, could be valued at $3.5 billion.
Sources indicate that Scopely, a subsidiary of Savvy Games Group, which is owned by Saudi Arabia’s PIF, will acquire Pokémon GO and other mobile games as part of the transaction. The deal could be announced in the coming weeks.
Niantic, which spun off from Alphabet as an independent company in 2015, has been developing AR and mixed reality technologies. Its Lightship platform enables developers to create their own AR applications and experiences.
In August, Savvy Games signed an agreement with Niantic to help expand its presence in the Middle East and North Africa (MENA) region, establishing regional operations in Saudi Arabia, the UAE, and Egypt.
Pokémon GO became a global phenomenon upon its launch in 2016. Using GPS technology, the game allows players to capture, train, and battle virtual Pokémon that appear in real-world locations based on their geographic position.
Savvy Games acquired Scopely, a mobile gaming company, for approximately $5 billion in 2023.
Scopely’s game portfolio includes popular franchise-based games such as The Walking Dead, Wheel of Fortune, WWE Wrestling, and Star Trek, as well as board game adaptations like Yahtzee, Scrabble, and Monopoly.
In 2024, Scopely ranked as the second-largest mobile game publisher globally in terms of revenue, generating $2 billion last year, second only to Shenzhen Tencent Tianyou Technology, which led the industry with $6.2 billion.
Founded in 2011, Scopely recently surpassed a milestone of $10 billion in lifetime revenue.
PIF’s investments in Savvy Games and Scopely align with Saudi Arabia’s vision to diversify its economy and develop the country’s gaming industry.
Savvy Games aims to create over 600 jobs in the gaming sector in the coming years.
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