Pokemon Go Developer Close to a Saudi Arabian Acquisition

Posted by By our-little-miss-is-home February 19, 2025 5 Views 5 Min Read
Pokemon Go Developer Close to a Saudi Arabian Acquisition
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Summary

  • Niantic may sell its gaming division, including Pokemon GO, to Scopely for over $3 billion.
  • Saudi Arabia’s increasing interest in the gaming industry is seen through investments in Nintendo and others.
  • Niantic’s reported deal with Scopely is part of Saudi’s drive to diversify its investments.

Niantic is reportedly looking to sell its video game division, known for developing Pokemon GO, to Scopely, a US-based entertainment company owned by the Saudi Arabian state-controlled Savvy Games Group, in a deal worth more than $3 billion. Saudi Arabia’s rumored interest in owning Pokemon GO follows a period of notable activity during which the Middle Eastern country has increased its stake in the mainstream gaming industry.

A decade ago, in 2016, Pokemon GO burst onto the scene and emphatically put the augmented reality-focused developer, Niantic, on the map. Thanks to the AR game’s massive popularity, the American developer has also had a chance to give established franchises, including Pikmin and Monster Hunter, an AR spin in recent years. However, post the pandemic years, Pokemon GO‘s yearly revenue has been dropping consistently, with 2024 marking the game’s second-worst annual revenue performance, per Statista. And now, it looks like Niantic may finally be looking at options for a sale, with Scopely, the developer purchased by Savvy Games Group in 2023 following the success of Monopoly Go!, showing interest.

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According to Bloomberg, Niantic is in talks with Scopely to reach an agreement for the sale of the former’s gaming business, which includes major titles such as Pokemon GO and Monster Hunter Now. The acquisition deal, rumored to be worth $3.5 billion, may be publicly announced in the “coming weeks.” Even though takeover discussions may be actively progressing, the report acknowledges that anything could happen and that there’s “no assurance” of the talks materializing into something real. In the event that the move goes through, Pokemon GO would effectively become a part of Scopely’s parent, Savvy Games Group, which was founded by the Public Investment Fund (PIF), a state-controlled body chaired by Saudi Arabia’s Crown Prince and Prime Minister Mohammed bin Salman.

Pokemon GO Deal Rumor Comes Amid Saudi Arabia’s Growing Interest in the Gaming Industry

For quite some time, Saudi Arabia has been working on diversifying its investments, with gaming being one of its areas of interest. Since 2023, the state-owned PIF has been the largest external shareholder in Japanese gaming giant Nintendo, while also owning stocks in Activision, Capcom, and other major industry players. Importantly, the Middle Eastern nation is also set to host the first-ever Olympic eSports Games in 2025. The latest rumor of the PIF-backed Savvy Games Group potentially adding one of the most popular mobile games to its portfolio further legitimizes Saudi Arabia’s growing interest in the domain.

As Niantic’s reported deal unfolds in the background, its devs are busy working on new Monster Hunter Now content. In the build-up to the release of Monster Hunter Wilds on February 28, 2025, the AR title recently announced the arrival of a new monster on the day of the console game’s launch.

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