Pokémon Go has become a cultural landmark since its release in 2016, helping to popularize augmented reality gaming and making Niantic a household name.
However, after almost a decade, it looks like major changes could be on the way. Bloomberg reports that Niantic is in talks to transfer its gaming division to Scopely, a mobile game developer that is part of Saudi Arabia’s Savvy Games Group.
The deal is expected to be worth about $3.5 billion, which could lead to a change in ownership of one of the most successful AR games ever created. Niantic, once part of Google and now an independent entity since 2015, had a harder time replicating the success it had at the start.
Although Pokémon Go continues to be a top contender in mobile gaming, consistently earning hundreds of millions yearly, the company has had a hard time recreating that level of success. Niantic's had a rough few years, going through multiple restructures, layoffs, and even canceling projects like Harry Potter: Wizards Unite in 2022.
If the sale goes through, it would include not just Pokémon Go but also Niantic's other mobile gaming projects, like Monster Hunter Now. However, the deal would exclude Niantic’s non-gaming technologies, particularly its geospatial mapping tools, which are essential for creating real-world AR experiences.
Sources familiar with the issue have informed Bloomberg that "a deal could be announced in the coming weeks.” Still, these sources note that “there’s no assurance an agreement will be reached,” as outside factors could still affect the final outcome.
Savvy Games Group, a subsidiary of the Saudi Public Investment Fund (PIF), has been aggressively expanding its presence in the gaming industry. In 2023, the company took over Scopely for $4.9 billion and revealed its intention to invest $37.8 billion in the gaming sector, with $13.3 billion earmarked for major acquisitions.
The company has also been outspoken in its commitment to making Saudi Arabia a leading global gaming hub by 2030. This is not the first time Niantic and Savvy Games Group have worked together. A deal was signed in August 2024 with the goal of growing Niantic’s operations across Saudi Arabia, the UAE, and Egypt.
On top of that, Pokémon Go officially launched in Saudi Arabia in November 2024.
The deal, once finalized, would be one of the biggest acquisitions in mobile gaming, giving Saudi Arabia more control over a well-known title.