Pokemon Go Developer Set To Be Acquired By Saudi Arabia's Scopely In $3.5 Billion Deal

Saudi Arabian-owned mobile developer Scopely has announced that it'll be acquiring Niantic's video game division, paying $3.5 billion for the developer behind Pokemon Go. Also included in the proposed deal--which was revealed several weeks back--are several other Niantic titles, like Monster Hunter Now and Pikmin Bloom. This is the No. 8 biggest gaming buyout in history.

"With Scopely’s full commitment, experience, and resources, we're going to make Pokemon Go the very best it can be--with incredible battles for thousands of Trainers at a time at our live events and new ways to connect to your friends and community, all while remaining focused on the excitement and experience of discovering Pokemon in the real world," Niantic studio leader Ed Wu said in a blog post. "We have invested to empower thousands of community leaders and ambassadors who lead millions of Trainers to play together in the real world, and Scopely is in full agreement that this highly-admired program will be a priority to invest in together."

According to Wu, the entire Pokemon Go team will be retained through this new partnership, and Scopely offered the studio a development environment that it found "extremely appealing". The acquisition will still need to pass regulatory approval conditions, and Pokemon Go social companion apps Campfire and Wayfarer will also be included in the deal. A Scopely spokesperson told GameSpot that the "Saudi Arabian government is not involved in Scopely's operations." However, it does own Scopely through the Saudi Public Investment Fund.

Pokemon Go was first launched in 2016, quickly becoming a phenomenon in the mobile gaming space. While the game saw healthy growth over the years, the COVID pandemic and lockdowns negatively impacted its popularity, leading to significant layoffs at the company and canceled projects in recent years. This new acquisition is one of several big investments made by Saudi Arabia in the video game industry, as it has acquired stakes in major companies like Nintendo, EA, and Activision Blizzard through the Saudi Public Investment Fund.

Niantic says that the company will now transition into a new business--Niantic Spatial--led by founder and CEO John Hanke (via Variety). Niantic Spactial will be a "geospatial AI company powered by a next-generation map" that will allow devices to interact with the physical world.