Niantic Inc., the company behind the hit game Pokémon Go, is in talks to sell its video game division to Scopely Inc., owned by Saudi Arabia’s Savvy Games Group.
The deal is estimated to be worth $3.5 billion (RM15.6 billion) and could close soon, although no deal has been confirmed.
Pokémon Go revolutionized mobile gaming in 2016, encouraging users to explore real-world locations while exploring in the game.
Despite garnering a high user base, Niantic has struggled to maintain momentum, leading to layoffs and project cancellations.
Scopely was acquired for $4.9 billion in 2023 by Savvy Games, a subsidiary of Saudi Arabia’s Public Investment Fund.
Niantic, originally part of Google, was spun out in 2015 under founder John Hanke, who previously worked in satellite mapping.
Niantic also develops 3D mapping technology, using machine learning for geospatial modeling.
In August, they partnered with Savvy to expand their influence in the Middle East, in line with Saudi efforts to expand their video game industry.
