According to Bloomberg, several sources report that Niantic, the company behind popular mobile AR games like Pokémon Go, is in talks to sell its video game business to Scopely, a major developer and distributor of mobile games, with an initial valuation of $3.5 billion.
Scopely is a subsidiary of Savvy Games Group, owned by the Public Investment Fund of Saudi Arabia. Niantic, which spun off from Alphabet, Google’s parent company, in 2015, achieved great success with Pokémon Go in 2016 and continues to generate high revenues. However, the company has faced challenges in sustaining its success, with layoffs in 2022 and 2023, as well as the cancellation of several current and future games, including Harry Potter: Wizards Unite.
Representatives of Niantic and Scopely have declined to comment on this news report.
TLDR: Niantic, known for Pokémon Go, is reportedly negotiating a video game business sale to Scopely, facing challenges despite past success.
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