Scopely closes in on Pokemon Go acquisition: US-based game developer Scopely — a subsidiary of PIF’s Savvy Games Group — agreed to acquire Pokemon Go and other titles from American software developer Niantic for USD 3.5 bn, Niantic said in a statement. Niantic will contribute USD 350 mn from its balance sheet to the offer price, bringing the total value of the transaction to USD 3.85 bn for Niantic shareholders.

ICYMI- Reports of a potential acquisition have been swirling since last month, with the move coming as Scopely focuses on boosting its gaming portfolio with “community-driven, social gaming experiences.”

The details of the agreement: Scopely will acquire Niantic’s game development teams and games, including Pokémon GO, Pikmin Bloom, and Monster Hunter Now. It will also take over companion apps such as Campfire and Wayfarer, which support the main games. Following the takeover, Niantic will separate its mapping technology platform into a new independent company, Niantic Spatial, which will focus on geospatial AI. The transaction will also see Scopely inject an additional USD 50 mn into Niantic’s AI spinoff, Niantic Spatial. “All of Niantic’s original investors will also continue to be shareholders of Niantic Spatial.”

The bigger picture: The move marks the latest in the Kingdom’s USD 40 bn push to become a global gaming hub, as part of the government’s broader economic diversification plans led by the PIF — the primary executing arm for these ambitions. In fact, PIF’s gaming unit Savvy snapped up Scopely for USD 4.9 bn last year in the “largest investment Savvy has made to-date,” CEO Brian Ward at the time. Savvy also signed an MoU with SBI Holdings last month to introduce Japanese gaming companies into its Esports ecosystem.

Niantic’s gaming division engages over 30 mn monthly active users and generated more than USD 1 bn in revenue last year. Among its top titles, Pokémon GO continues to be a global sensation, consistently ranking in the top 10 mobile games since its launch nearly a decade ago, with over 100 mn unique players in 2024.

A rough patch for Niantic: Niantic has had “several tough years,” with mass layoffs in 2022 and 2023, Reuters notes. “Beyond the runaway success of Pokémon Go, many of Niantic’s other games have struggled to gain traction or have shut down entirely,” Bloomberg added.

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