Niantic, the company behind popular game ‘Pokémon Go’, is selling its video-game division to Saudi Arabia-owned Scopely for $3.5 billion. The deal marks a shift in focus for Niantic, which has struggled to replicate the success of ‘Pokémon Go’ since its 2016 release.
Scopely’s purchase of Niantic will also help advance Saudi Arabia’s ambitions to become a major global gaming hub. The country’s sovereign wealth fund previously acquired Scopely in 2023 as part of a broader push to diversify beyond fossil fuels.
As part of the deal, Niantic will distribute an extra $350 million to its equity holders and spin off its geospatial AI business into a new firm called Niantic Spatial. This new venture will be led by Niantic founder and CEO John Hanke and will receive $250 million in funding from Scopely.
The move follows several tough years for Niantic, including layoffs and the discontinuation of ‘Harry Potter: Wizards Unite’. The company’s original investors will continue to hold shares in Niantic Spatial.
Source: https://www.reuters.com/markets/deals/pokemon-go-maker-niantic-sell-game-division-saudi-owned-scopely-35-billion-2025-03-12