By Sagar V. Mankar 
Niantic Inc., the company behind Pokémon Go, is reportedly negotiating to sell its gaming division to Scopely Inc., a Saudi Arabia-backed gaming company, in a deal valued at approximately $3.5 billion.
The potential sale marks a significant moment for the San Francisco-based developer, which has been operating independently since its separation from Google in 2015.
According to Bloomberg reports, the deal could be finalized and announced within the coming weeks, though nothing has been officially signed yet.
The proposed buyer, Scopely Inc., is owned by Savvy Games Group, which operates under Saudi Arabia’s Public Investment Fund – one of the world’s largest sovereign wealth funds with assets estimated at $930 billion.
This acquisition would give Savvy Games Group complete control over Niantic’s gaming operations, including its flagship title Pokémon Go and other mobile games like Monster Hunter Now.
This isn’t the first connection between these companies. In August 2024, Niantic partnered with Savvy to expand its presence in the Middle East, specifically in Saudi Arabia, the United Arab Emirates, and Egypt. This expansion recently led to Pokémon Go’s official launch in Saudi Arabia on November 9, 2024.
Nearly a decade after its release, Pokémon Go remains highly profitable and continues to generate hundreds of millions in revenue annually. As per company statements, it holds the record for being the most downloaded and profitable augmented reality app ever created.
However, Niantic’s journey hasn’t been without challenges. The company struggled to replicate Pokémon Go’s extraordinary success with other titles. In 2022 and 2023, they had to reduce their workforce and cancel several games under development. One notable example was the closure of Harry Potter: Wizards Unite in 2022.
Beyond gaming, Niantic has developed various technological tools, including systems for capturing and sharing 3D scans of real-world locations. These tools have contributed to what the company announced in November as a “large geospatial model” using machine learning to understand and connect millions of real-world scenes globally. However, this technology division would not be included in the proposed sale, which focuses exclusively on the gaming unit.
The potential acquisition aligns with Savvy Games Group’s aggressive expansion strategy in the global gaming industry. Since its establishment in 2021, the company has made several major investments, including the $4.9 billion acquisition of Scopely in 2023.
The Saudi-backed company has also invested in other major gaming companies. They hold a 5% stake in Nintendo, along with investments in Capcom and Nexon. Through various transactions, they’ve acquired shares in prominent American video game companies including Electronic Arts, Take-Two Interactive, and Activision Blizzard. In 2022, they completed the acquisition of SNK through the Mohammed bin Salman Foundation.
Beyond gaming, Savvy Games Group has made significant moves in esports. In 2022, they acquired and merged two major esports organizers, ESL and FACEIT, creating the world’s largest esports company. This led to the establishment of the Esports World Cup in 2024, which boasted a prize pool of over $60 million across 22 tournaments and attracted more than 2 million visitors to Riyadh.
As reported by Gamedeveloper, Savvy Games Group has ambitious plans to create 39,000 jobs, establish 250 gaming companies, and contribute 50 billion riyals to Saudi Arabia’s GDP by 2030.
While the potential sale of Niantic’s gaming division represents another major move in Saudi Arabia’s growing influence in the global gaming industry, both companies have declined to comment on the ongoing negotiations.