Niantic in Talks to Sell Video Game Business to Scopely

Saudi Arabia-owned mobile game developer Scopely is reportedly negotiating to acquire Niantic, the company behind the popular Pokémon Go game.

Niantic © Niantic

Details of the Negotiation

According to a report from Bloomberg, the discussions involve a potential sale price of approximately $3.5 billion. An announcement regarding the deal could come in the next few weeks, although sources caution that no agreement is guaranteed. If finalized, the deal would include the Pokémon Go game along with other titles developed by Niantic.

Niantic's Game Portfolio

Niantic, in collaboration with The Pokémon Company International, launched the Pokémon Go app in July 2016, initially in select countries including the United States. The company has also developed:

Pikmin Bloom: An AR app based on Nintendo's Pikmin franchise, launched in 2021.
Ingress: An AR app that inspired an anime adaptation, which premiered in October 2018 and was later streamed by Netflix.
Monster Hunter Now: A new AR smartphone game in collaboration with CAPCOM, launched in September 2023.

Scopely's Recent Acquisition

Scopely was acquired by Savvy Games Group, a subsidiary of Saudi Arabia's Public Investment Fund (PIF), for $4.9 billion in 2023. The PIF, chaired by Crown Prince Mohammed bin Salman, has been actively investing in the gaming industry, including a Memorandum of Understanding with Niantic to enhance its presence in the MENA region.

Broader Context

The PIF has also made investments in notable companies such as Toei and Nintendo. Additionally, the Mohammed bin Salman Foundation owns the Saudi studio Manga Productions and a significant stake in the Japanese game developer SNK.

Controversies Surrounding the Crown Prince

Crown Prince Mohammed bin Salman has faced criticism for various actions, including:

The alleged approval of an operation to capture or kill journalist Jamal Khashoggi in 2018, which the Saudi government has denied.
The ongoing humanitarian crisis resulting from the war in Yemen.
However, he has also been praised for reforms such as lifting the ban on women drivers in 2018.

Conclusion

As negotiations between Niantic and Scopely unfold, the gaming community watches closely, anticipating the potential impact on the future of popular mobile games.

Sources: Bloomberg (Michelle F Davis and Cecilia D'Anastasio) via Hachima Kikō, Yahoo! Finance