Scopely buys Niantic's video game business for $3.5 billion

In a significant move within the gaming industry, Scopely has agreed to purchase Niantic's video game business, which includes the popular augmented reality game Pokémon Go, for $3.5 billion. The announcement was made on March 13, 2025. The acquisition marks a crucial step for Scopely, as it is now under the ownership of the Saudi Public Investment Fund, which has been actively pursuing investments in the gaming sector. Niantic's Pokémon Go has captivated millions of players worldwide, encouraging outdoor activity as they immerse themselves in the world of Pokémon. The deal signifies the ongoing trend of consolidation in the gaming industry, with larger companies seeking to acquire successful franchises to bolster their portfolios. Saudi Arabia's Public Investment Fund has been particularly aggressive in its pursuit of gaming-related ventures, as evidenced by its earlier acquisition of Scopely for $4.9 billion in 2023. This intensified focus on entertainment and technology aligns with Saudi Arabia's vision to diversify its economy away from dependency on fossil fuels. As part of this strategy, the Saudi government has pledged to invest $38 billion in the video game sector by 2030. This approach is designed to cultivate a thriving gaming industry within the country and is part of a broader push to become a global leader in entertainment and digital technology. The burgeoning sector has the potential to create thousands of jobs and offer various entertainment options for the youth of Saudi Arabia, who are increasingly drawn to tech-driven leisure activities. Niantic's decision to sell its video game business comes after years of successful operation and widespread popularity of Pokémon Go, which remains financially lucrative. The game has not only generated significant revenue but has also fostered a dedicated fanbase, making it a valuable asset in today's gaming landscape. As the deal progresses, it will be interesting to see how Scopely integrates Niantic's offerings and what future developments might arise in the ever-evolving video game industry.