Scopely Acquires Niantic’s Gaming Business, Including Pokémon Go, for $3.5 Billion

Niantic, the creator of the globally popular game Pokémon Go, has announced the sale of its gaming division to Scopely, a major player in the mobile gaming industry, for $3.5 billion. Despite the acquisition, Niantic has confirmed that its team of developers will remain in place, ensuring the continuation of new features and updates for its gaming titles. The transaction includes popular games such as Pokémon Go, Pikmin Bloom, and Monster Hunter Now, marking a significant shift in Niantic’s strategic direction as it pivots towards focusing on its geospatial AI business.

Niantic CEO John Hanke explained that this move is in line with the company’s broader vision of developing enduring, long-lasting games. He praised Scopely’s expertise in managing live services and handling major intellectual properties while maintaining a strong connection with its player communities. Niantic described Scopely as the ideal partner for its games, highlighting the company’s dedication to both its gaming teams and global audiences. The deal also includes an additional $350 million in cash distribution, raising the total value for Niantic equity holders to about $3.85 billion.

This acquisition offers Scopely, a subsidiary of Saudi Arabia’s Public Investment Fund-backed Savvy Games Group, an opportunity to broaden its portfolio with some of the world’s leading augmented reality (AR) games. Scopely already has an impressive track record with successful mobile titles like Marvel Strike Force and Star Trek Fleet Command.

Niantic has reassured players that their favorite games will continue to thrive under Scopely’s stewardship. The company emphasized that its game teams have long-term roadmaps and will continue to develop new features and events. Niantic has committed to maintaining consistent investment in these titles, ensuring that players will continue to enjoy the experiences they know and love.

Ed Wu, head of Pokémon Go, also expressed confidence in the transition, highlighting Scopely’s dedication to supporting the game’s community. Wu stated that he is optimistic about Pokémon Go’s future as part of Scopely, believing it will flourish well into its second decade and beyond. He reassured players that the entire Pokémon Go development team would remain intact, continuing to introduce fresh features and live events.

Niantic, originally spun out of Google in 2015, gained acclaim for creating games that encourage real-world interaction, with Pokémon Go becoming a cultural phenomenon. However, the company’s ambitions now extend beyond gaming. As part of this strategic shift, Niantic is spinning off its geospatial AI division into a new entity called Niantic Spatial Inc., which will be led by Hanke and supported by $250 million in capital.

Niantic Spatial will focus on advancing spatial computing and developing AI-driven applications for both enterprise and consumer use. The company aims to lead the evolution of geospatial AI by enhancing spatial intelligence, helping users better understand, navigate, and engage with the physical world. Leveraging its proprietary digital mapping and AR technologies, Niantic Spatial plans to create innovative applications across various sectors, including logistics, construction, and tourism, marking a new chapter in the company’s journey.