Niantic is reportedly selling Pokémon GO to Scopely Inc.

Niantic look set to sell their biggest asset to the Saudi Arabia-owned games company.

According to reports, it appears that Niantic, the creative force behind the popular game Pokémon GO, is engaging in discussions about selling its gaming division to Scopely Inc., a company based in Saudi Arabia.

Reports suggest that a potential deal could cost an enormous $3.5 billion, but so far, Niantic has remained silent about this alleged agreement. This news emerged just before the Pokémon GO Tour event, where live activities are scheduled in Los Angeles and New Taipei City.

Niantic look to be selling Pokémon GO

According to a report from Bloomberg, who consulted several individuals privy to the negotiations, a potential $3.5 billion agreement is under consideration that would encompass Niantic’s entire video-game business. This deal would presumably cover popular games such as Peridot, Monster Hunter Now, and Pikmin Bloom.

The company currently negotiating with Niantic is Scopely Incorporated, which is controlled by Savvy Games Group, a gaming company supported by Saudi Arabia’s Public Investment Fund. Scopely is renowned for developing some of the top-grossing mobile games, such as MONOPOLY GO!.

2023 saw MONOPOLY GO! raking in a whopping $1.3 billion, a figure that’s no stranger to seasoned gamers like me, thanks to its smartly designed in-app purchases and microtransactions – similar to what we see in Pokémon GO. But fear not, they’ve got a solid history of maintaining mobile games, so it seems this game is here to stay!

It’s thought that Niantic may choose to sell their games, including Pokémon GO, as part of their strategic shift towards artificial intelligence and their well-known Large Geospatial Model. In November, they disclosed that they utilize player-submitted scans of real-world locations to construct this Large Geospatial Model.

Appearing puzzling at first glance, offloading such a priceless collection of assets for such an enormous sum might seem unusual. Yet, if Niantic was aiming to transition into AI-related projects, this action would align better with that goal. By selling now, they can utilize the funds and redirect their focus accordingly.

Mixed reaction to reports

Currently, these are merely reports, but it’s seldom there’s fire without smoke. Therefore, Niantic appears to be at least considering the possibility of selling their game division. However, this potential sale may not come to fruition. There could be added complexities with Pokémon GO, as the game is licensed from The Pokémon Company, and they might have a say in any deal. If the license were removed, the value of the deal would likely decrease substantially.

Reaction to the reports has been mixed from the Pokémon GO Community.

In recent times, there’s been a significant amount of discontent towards Niantic. Players have voiced concerns over an increase in tickets, suboptimal events, and other issues. Yet, when push comes to shove, it appears that the fans are more comfortable with the current state of affairs, as one fan put it, “the devil you know.” Essentially, they don’t wish for drastic changes to the game they’ve been enjoying since 2016.

It remains uncertain whether anything will materialize from this report, given the significant scale and intricate nature of such deals, which typically require time to complete. Nonetheless, it appears that Niantic is gearing up for a separation from their games division, and it seems that the era of Pokémon GO may be drawing to a close.

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2025-02-19 13:41

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