Niantic’s Potential $3.5 Billion Move to Revolutionize the Gaming Industry
Pokemon Go creator Niantic is allegedly in negotiations to transfer its gaming division to mobile publisher Scopely for $3.5 billion.
According to a report from Bloomberg, Niantic is contemplating stepping back from game development to presumably concentrate on its other offerings, which include a geospatial AI model and the XR visual editor Niantic Studio.
Sources familiar with the matter have indicated that an announcement regarding the deal could be made in the coming weeks and stated that the transaction would involve Pokemon Go as well as several other mobile games.
The potential acquirer, Scopely, is owned by the Saudi multinational investment firm Savvy Games Group, which is a subsidiary of the Saudi Arabian sovereign wealth fund, PIF.
Pokemon Go continues to be the standout success of Niantic’s gaming portfolio. The company has launched a few augmented reality titles aiming to replicate that achievement, but the results have been mixed.
Titles based on popular franchises such as Pikmin and Monster Hunter are still appealing, while various projects like Harry Potter: Wizards Unite, NBA All-World, and Marvel Realm of Champions have all been canceled.
These cancellations occurred amid workforce reductions and office closures, with Niantic eliminating 230 positions in 2023 while shifting away from internal game development.
Both Niantic and Scopely opted not to comment on the situation when contacted by Bloomberg.
About the Author
Data Editor, GameDeveloper.com
Game Developer news editor Chris Kerr is an award-winning journalist with over a decade of experience in the gaming sector. His work has been featured in major print and online publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered significant industry events such as GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has served on the judging panel for The Develop Awards multiple times and has appeared on BBC Radio 5 Live to discuss breaking news.