Niantic has agreed to sell its video game division, including Pokémon Go, to Scopely for $3.5 billion, a deal reflective of Saudi Arabia’s increasing investment in the gaming industry driven by its Public Investment Fund. Critics, however, remain wary of the motivations behind these investments.
Scopely Acquires Niantic's Gaming Business for $3.5 Billion Amid Saudi Investment Surge
Scopely Acquires Niantic's Gaming Business for $3.5 Billion Amid Saudi Investment Surge
The purchase marks a significant move in Saudi Arabia's expanding influence in the global gaming sector, as Scopely takes control of the Pokémon Go franchise.
In a major development in the gaming industry, Niantic, known for its blockbuster augmented reality game Pokémon Go, announced an agreement on Wednesday to sell its gaming business to Scopely for a staggering $3.5 billion. This acquisition underscores Saudi Arabia's growing footprint in the global gaming scene, given that Scopely is now under the control of the Saudi sovereign wealth fund, following its acquisition in 2023.
Pokémon Go gained immense popularity when it launched in 2016, prompting millions to engage in outdoor gaming, chasing virtual creatures in parks, urban centers, and even oceans. The game continues to yield substantial financial returns and boasts a committed player base exceeding 20 million active users weekly, according to Scopely’s announcement.
Scopely, headquartered in Culver City, California, also owns popular titles such as Monopoly Go. The company has committed to retaining the full staff of Niantic’s gaming teams, ensuring that the creative force behind Pokémon Go remains intact. This acquisition is part of a larger strategy by Saudi Arabia's Public Investment Fund committed to investing $38 billion into the video gaming sector by 2030 aimed at diversifying the country’s economic reliance on oil.
The Public Investment Fund, which manages nearly a trillion dollars in assets, has broadened its investments across various industries including real estate, artificial intelligence, and sports, coinciding with Saudi Arabia's ambition to cultivate a modernized image on the global stage. However, this push has prompted criticism that these investments aim to bolster the kingdom’s reputation amidst ongoing concerns regarding its human rights record and governance.
With Scopely now at the helm of a gaming giant like Niantic, the world will closely watch how this acquisition impacts not just the gaming landscape but also broader perceptions of Saudi influence in recreation and entertainment sectors.
