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.
2 min
“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
Copyright 2020, Dow Jones & Company, Inc. All Rights Reserved Worldwide. LEARN MORE
Ophora Tallawong has launched its final release of quality apartments priced under $700,000.
International AI strategist Justin Kabbani will headline the Kanebridge Property Summit in Sydney on June 18, with tickets selling fast.
With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.
2 min
A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.
The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.
The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.
GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.
“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.
The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.
Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.
According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.
“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”
The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.
Hunt said consumer brands offered a level of tangibility that many investors found appealing.
“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”
The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.
With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.
For more information, contact marc@kanerbridge.com.au
As the season turns, Handpicked Wines’ latest Pinot Noir and Chardonnay releases reveal how subtle shifts in place shape what ends up in the glass.
New research suggests that bonuses make employees feel more like a mere cog in a wheel.
