The acquisition will bring Niantic’s entire game development team, games, companion apps and services into Scopely’s video game portfolio.
Scopely Inc., backed by Saudi Arabia’s Public Investment Fund (PIF), has finalised an agreement to acquire Niantic Inc.’s gaming division, including its flagship mobile game, Pokémon Go, in a $3.5 bn deal. The acquisition also includes other Niantic titles such as Pikmin Bloom and Monster Hunter Now, along with the teams behind them.
Scopely revealed that Niantic’s gaming division generated more than $1bn in revenue last year, with a player base of 30m monthly active users.
Upon the acquisition, Niantic will spin off its technology platform into a new standalone entity, Niantic Spatial Inc. Led by John Hanke, Niantic Spatial will be a geospatial AI company powered by a next generation map, enabling devices and machines to understand and interact with the physical world. Niantic Spatial and will continue to own and operate AR games Ingress Prime and Peridot.
Scopely’s acquisition excludes Niantic’s mapping technology business, which will now operate under a newly formed company, Niantic Spatial. The newly rebranded entity aims to develop advanced mapping technology using player data, with applications across manufacturing, education, logistics, tourism and other industries. Niantic Spatial has secured $200m in funding from Niantic and an additional $50m from Scopely.
All members of the Niantic gamemaking team, along with tenured leaders Kei Kawai and Ed Wu, will join over 2,300 Scopeleans across Asia, EMEA, North America and Central America.
Tim O’Brien, Chief Revenue Officer and Board Member of Scopely, said: “Scopely has always been focused on cultivating meaningful communities through a shared love of play, and the Niantic games organisation is one of the best in the world at this endeavor. We are extremely inspired by what the team has built over the last decade, delivering innovative experiences that captivate a vast, enduring global audience and get people out in the real world. We look forward to further accelerating the team’s creativity through our partnership. Few games in the world have delivered the scale and longevity of Pokémon GO, which reached over 100m players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokémon GO live events attracting millions of attendees. After spending time with the Niantic team, it quickly became clear that this organisation shares our inclination to create industry-leading outcomes and exceptional player experiences. We look forward to a bright future ahead.”
John Hanke, Founder and CEO of Niantic, added: “Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely. Scopely shares our focus on building and operating incredible live services, has exceptional experience working with the world’s biggest and most beloved intellectual properties, and cares deeply about its player communities and game-making teams. I firmly believe this partnership is great for our players and is the best way to ensure that our games have the long-term support and investment needed to be ‘forever games’ that will endure for future generations.”
Ed Wu, SVP of Pokémon GO, stated: “It’s been an incredible joy to serve hundreds of millions of Trainers in our real-world community for the past 10 years, and I truly believe the best is yet to come. Our mission remains clear: to inspire people to discover Pokémon in the real world together. With Scopely’s full commitment, experience, and resources, we’re going to make Pokémon GO the very best it can be – from incredible battles for thousands of Trainers at a time at our live events to new ways to connect to your friends and community. Most importantly, we’ll remain focused on the excitement and experience of discovering Pokémon in the real world.”
Scopely, acquired by Savvy Games Group—a subsidiary of Saudi Arabia’s PIF—for $4.9bn in 2022, is a key player in Saudi Arabia’s broader vision of becoming a global hub for the video game industry. Savvy was established with $38bn in funding to drive growth in the gaming sector.
The transaction is subject to customary closing conditions, including regulatory approvals.
