In brief
Niantic, known for its Pokémon Go sensation, has sold its video game sector to Scopely for $3.5 billion, bringing the Saudi sovereign wealth fund deeper into the gaming market.
Niantic, the studio behind the wildly popular Pokémon Go, has struck a significant deal, selling its video game business for $3.5 billion to Scopely. Scopely, also under the wings of Saudi Arabia’s Public Investment Fund (PIF), aims to enhance its gaming portfolio with this blockbuster acquisition. Pokémon Go captured worldwide attention when it launched in 2016, driving players outdoors to explore their surroundings in search of Pokémon. The augmented reality game continues to thrive with over 20 million weekly active players, generating impressive revenue even years after its release.Scopely, based in California, is known for games like Monopoly Go and plans to integrate all Niantic gaming teams into its operations. This purchase exemplifies the Saudi PIF's broader strategy to invest $38 billion in the gaming sector by 2030, aiming to diversify the nation’s economy beyond traditional oil revenues.However, the PIF's heavy investments in international sports and entertainment, including video games, have drawn scrutiny for their potential to improve the kingdom's global image amid ongoing concerns around human rights. With its significant resources, the fund is eyeing a wide array of industries—real estate, artificial intelligence, and more—while steering clear of its oil-based roots.
