Niantic Said to Be in Discussions for $3.5 Billion Sale of Gaming Division to Scopely

According to reports, Niantic, the studio behind Pokémon Go, is allegedly in negotiations to offload its gaming portfolio to Scopely, a subsidiary of Savvy Games Group. Although neither party has publicly confirmed the talks, sources suggest that the deal could encompass Niantic's flagship augmented reality title, Pokémon Go. If the sale goes through, it is estimated to be valued at approximately $3.5 billion and may be formally announced in the near future. Scopely was previously acquired by Savvy Games Group, a Saudi Arabian gaming investment conglomerate, for $4.9 billion in July 2023. Recently, Scopely appointed Nika Nour as Senior Vice President and Head of International Business Development. Saudi Arabia has been increasingly active in the gaming and esports sector, with investments totaling $38 billion through its Public Investment Fund, which holds stakes in prominent companies such as Electronic Arts, Nintendo, Nexon, and Capcom. The country is also set to host the inaugural Olympic Esports Games in 2027. However, these investments have sparked controversy due to Saudi Arabia's questionable human rights record, particularly regarding gender inequality and the criminalization of homosexuality.