Pokemon Go Creator Niantic in Talks for $3.5B Deal to Sell Games Unit

Niantic Inc., the developer behind the global phenomenon Pokemon Go, is reportedly in final negotiations to sell its gaming division to Scopely Inc., a mobile games company controlled by Saudi Arabia’s Savvy Games Group. The deal, valued at approximately $3.5 billion, could be announced within weeks, according to sources familiar with the matter.

The potential acquisition would include Pokemon Go, which remains the most downloaded and profitable augmented reality app ever created, along with Niantic’s other mobile gaming properties. This development comes after Niantic faced challenges in replicating the extraordinary success of Pokemon Go, leading to staff reductions and project cancellations in 2022 and 2023, including the shutdown of Harry Potter: Wizards Unite.

Niantic, which emerged as an independent company from Google in 2015 under the leadership of CEO John Hanke, revolutionized mobile gaming with Pokémon Go’s location-based gameplay that encouraged players to explore their surroundings while collecting Nintendo’s popular characters.

Beyond gaming, Niantic has developed technology for 3D scanning of real-world locations and recently announced progress on a comprehensive geospatial model utilizing machine learning to understand and connect global locations.

Moreover, the deal would mark a significant expansion for Scopely, which was acquired by Savvy Games for $4.9 billion in 2022. The acquisition aligns with Savvy Games’ strategy to secure leading mobile gaming properties, as outlined by CEO Brian Ward, who previously indicated plans to add a “genre-leading” mobile title to their portfolio. Both Niantic and Scopely have declined to comment on the negotiations, and sources note that the deal has not been finalized.

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Pokemon GO

Publisher: Niantic

Developer: Niantic

Release Date: 2016-07-06

Android, iOS

Catch Pokemon in the world with this augmented reality game!

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