Pokémon Go Maker Inches Closer to $3.5 Billion Deal with Saudi Arabia
Niantic Inc., the creator of the 2016 global sensation Pokémon Go, is reportedly negotiating a deal worth approximately $3.5 billion. This transaction involves selling its video-game division to Scopely Inc., a company owned by Saudi Arabia’s Savvy Games Group.
According to a report by Bloomberg, the agreement could materialize within the next few weeks. If finalized, it will include not only Pokémon titles but also other mobile games developed by Niantic. However, there are no guarantees that the negotiations will lead to a binding contract.
Despite its initial success, Niantic faced challenges maintaining momentum after Pokémon Go. The company underwent layoffs and halted projects like Harry Potter: Wizards Unite in 2022 and 2023. Nevertheless, Pokémon Go remains one of the most downloaded augmented reality applications globally.
Strategic Partnership Between Niantic and Savvy
In addition to game development, Niantic focuses on creating tools for capturing and sharing 3D scans of real-world locations. These efforts contribute to building an extensive geospatial model connected via machine learning techniques. Recently, Niantic partnered with Savvy to enhance its presence across Saudi Arabia, the UAE, and Egypt.
Scopely itself was acquired for nearly $5 billion back in 2021. Brian Ward, CEO of Savvy, emphasized adding top-tier mobile games to their portfolio during an interview last year. He described this strategy as crucial for expanding into new markets.
Economic Diversification Through Gaming
This potential acquisition aligns with Saudi Arabia’s broader vision of economic diversification under Vision 2030. By investing heavily in gaming companies such as Scopely, the kingdom aims to reduce dependency on oil revenues while fostering growth in creative industries.
As part of Saudi Public Investment Fund (PIF)’s initiatives, Savvy continues to seek opportunities that strengthen its position within the international gaming landscape. Should the deal proceed as planned, it would represent another significant milestone towards achieving these goals.
With both parties remaining tight-lipped about ongoing discussions, industry observers eagerly await further developments regarding what promises to be one of the largest deals in recent gaming history.
