Niantic, the company known for creating the popular game Pokémon Go, has agreed to sell its video game business to Scopely for $3.5 billion. The buyer, Scopely, is owned by the Saudi sovereign wealth fund and has been making significant investments in the video game industry.
Pokémon Go became a cultural phenomenon when it was released in 2016, attracting millions of players around the world. Despite being several years old, the game continues to generate significant revenue and has a large and loyal fan base.
Scopely, based in Culver City, California, is known for games like Monopoly Go and has announced that it will be absorbing all of Niantic’s gaming team staff. Pokémon Go currently has over 20 million active weekly players, according to Scopely.
The Saudi sovereign wealth fund has been rapidly expanding its presence in the video game industry, with the acquisition of Scopely in 2023 for $4.9 billion. The fund, known as the Public Investment Fund, has committed to investing $38 billion in video games by 2030 in an effort to diversify the Saudi economy beyond fossil fuels.
However, some critics have raised concerns about Saudi Arabia’s investments in sports and video games, viewing them as attempts to improve the country’s reputation, particularly in regards to human rights.
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