**In a significant shift in the gaming landscape, Niantic has announced the sale of its lucrative video game business, including the globally popular Pokémon Go, to Scopely for $3.5 billion, marking another strategic acquisition by Saudi Arabia's Public Investment Fund.**
**Niantic Sells Pokémon Go Business to Scopely for $3.5 Billion in Saudi Investment Push**
**Niantic Sells Pokémon Go Business to Scopely for $3.5 Billion in Saudi Investment Push**
**Scopely acquires Niantic's gaming division, fueling Saudi Arabia's multi-billion dollar strategy in the gaming sector.**
Niantic, the creator of the groundbreaking augmented reality game Pokémon Go, revealed on Wednesday that it has agreed to sell its gaming business to Scopely, a company backed by Saudi Arabia's sovereign wealth fund, for a staggering $3.5 billion. Launched in 2016, Pokémon Go quickly became a cultural phenomenon, captivating tens of millions of players worldwide who ventured into urban and natural landscapes to catch virtual creatures from the beloved Japanese franchise.
This acquisition is part of Saudi Arabia's Public Investment Fund's aggressive strategy to strengthen its foothold in the gaming industry, which has witnessed a series of high-profile investments in recent years. Pokémon Go remains a financial powerhouse, consistently generating millions in revenue and maintaining a dedicated player base.
Scopely, headquartered in Culver City, California, is home to several popular titles, including Monopoly Go. In its announcement, the company confirmed plans to integrate Niantic's gaming teams into its workforce following the acquisition, reflecting its commitment to sustaining the continued success of Pokémon Go, which boasts over 20 million active weekly players.
This purchase follows Scopely’s acquisition by the Savvy Games Group for $4.9 billion in 2023, a division set up by Saudi Arabia to spearhead initiatives in the gaming realm, including esports. The Saudi government has pledged a massive $38 billion investment in the gaming sector by 2030, with the Public Investment Fund overseeing assets worth almost a trillion dollars, diversifying investments across various industries including sports, artificial intelligence, and entertainment.
Despite the financial intentions, critiques arise regarding Saudi Arabia's investments in sectors like sports and gaming, suggesting they serve to enhance the nation’s image amidst ongoing concerns about human rights.
By Yan Zhuang, Times reporter in Seoul covering breaking news.
