Niantic to Sell Pokemon GO, Other Games to Saudi-Backed Group in $3.5b Deal
The games and apps made more than $1 billion in revenue last year, Scopely said.
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“Pokemon GO” maker Niantic reached an agreement to sell its gaming business to Savvy Games Group’s subsidiary, Scopely, for $3.5 billion, handing the company backed by Saudi Arabia’s sovereign wealth fund the hit mobile game along with engagement and live-experience apps.
“Pokemon GO,” one of the first videogames to use augmented reality, exploded in popularity after launching in 2016. The game allows players use their smartphone cameras to find and capture virtual creatures. The franchise amassed more than $8 billion in revenue since its inception and the game reaches players in over 190 countries and regions, Savvy Games Group said.
Niantic is also selling “Pikmin Bloom,” a game in collaboration with Nintendo that debuted in 2021, and “Monster Hunter Now,” Niantic’s most recent game that reached more than 15 million downloads following its September 2023 launch. Under the deal, Scopely will also take control of Campfire, an app that connects players, and Wayfarer, a player engagement service.
Scopely said the games and apps, which draw more than 30 million monthly active players, made more than $1 billion in revenue last year. The deal will add three games to its stable, which already includes “MONOPOLY GO!,” “Stumble Guys,” “Star Trek Fleet Command” and “MARVEL Strike Force.”
“This transaction represents one of the largest games deals made by a private company in the last decade, ranking alongside Scopely’s own acquisition by Savvy in 2023 for $4.9 billion,” Tim O’Brien, Scopely’s chief revenue officer, said in a statement.
The deal marks a major structural overhaul for Niantic. The company has struggled to come up with big hits like “Pokemon GO” and slashed dozens of jobs in recent years in an effort to focus on fewer games and develop augmented-reality technology.
Niantic said it planned to spin off its geospatial artificial-intelligence business into a new company, Niantic Spatial, once the deal with Scopely closes. The company said Niantic Spatial would get $250 million of capital, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely.
Scopely and Niantic expect the deal to close this year, subject to customary closing conditions and completion of a regulatory review.
Write to Mauro Orru at mauro.orru@wsj.com
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