Niantic, the company famous for Pokémon Go, has agreed to sell its video game business for $3.5 billion to Scopely, owned by the Saudi sovereign wealth fund. Pokémon Go, the augmented reality mobile game that took the world by storm in 2016, still has millions of players.
The deal is part of Saudi Arabia’s Public Investment Fund’s multibillion-dollar foray into the video game industry. Scopely, known for games like Monopoly Go, will take on Niantic’s gaming teams, including the staff. Pokémon Go boasts over 20 million active weekly players.
Scopely was acquired for $4.9 billion in 2023 by the Savvy Games Group, also owned by the Saudi sovereign wealth fund. The fund plans to invest $38 billion in video games by 2030. Critics argue that Saudi Arabia’s investment in sports and video games is an attempt to improve its global image, particularly in light of human rights concerns.
The Saudi Public Investment Fund manages nearly a trillion dollars in assets and invests in various industries, aiming to diversify the Saudi economy beyond oil. The acquisition of Niantic’s gaming business adds to the fund’s growing presence in the video game market, positioning it as a major player in the industry.
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