Pokémon Go Maker Niantic Reportedly Selling Gaming Division for $3.5B

Niantic, the developer of Pokémon Go, is in advanced talks to sell its video games division to Scopely, valued at $3.5 billion, according to a new report. Bloomberg has the report, citing with knowledge of the matter. A deal could be announced in the coming weeks, though there is no guarantee that it will be completed.

Pokémon Go Creator Niantic Reportedly in Talks to Sell Gaming Division to Scopely for $3.5 Billion

By 2015 Niantic had restructured as a stand-alone company after the founding of Google, Inc. (later Alphabet, Inc.) and was being referred to simply as Niantic. The studio became a leader in augmented reality gaming when it launched Pokémon Go in 2016. A runaway hit, the game topped 500 million downloads within its first year. By 2020, it had produced more than $6 billion in revenue. But Niantic has struggled to repeat Pokémon Go’s success in other titles — even when it draws on major franchises.

Harry Potter: Wizards Unite was released in 2019 and struggled to find an audience, ultimately closing its doors within three years. NBA All-World had an even worse run, bowing out after just a couple of months in 2023. Some projects — including MARVEL World of Heroes — were canceled before they were released, while others, including Monster Hunter NOW and Pikmin Bloom, never achieved major hit status. For comparison, Pikmin Bloom only generated $44 million in revenue over two and a half years.

In light of these difficulties, Niantic is allegedly considering selling its gaming division to Scopely, a prominent mobile gaming company behind games such as Monopoly Go!, Marvel Strike Force, Star Trek Fleet Command, and WWE Champions. Scopely itself was acquired in 2023 for $4.9 billion by the Savvy Games Group, which is fully owned by Saudi Arabia’s Public Investment Fund (PIF). If the sale goes through, it would mark a major shift for Niantic, which has long been seen as a pioneer in AR gaming. While Pokémon Go remains successful, its inability to sustain other major titles may have led the company to focus on other ventures or offload its gaming division entirely.

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