Niantic's Game Division Sale

Niantic Labs, the creator of Pokémon Go, has announced the sale of its game division to Scopely, a Saudi-owned company, for $3.5 billion. The agreement includes most of Niantic's portfolio of AR games, including Pokémon Go, Monster Hunter Now, and Pikmin Bloom, among others. Additionally, the deal encompasses the company's social companion apps for Pokémon Go, Campfire and Wayfarer.

The sale is subject to regulatory approval and other closing conditions. Scopely will acquire Niantic's entire team of gamemakers and category-leading games. However, Niantic Labs will retain the AR gaming titles Peridot and Ingress.

Scopely is a major player in the mobile games industry, known for games like Star Trek Fleet Command, Marvel Strike Force, and Monopoly Go!. The company was founded in Los Angeles but was purchased using money from Saudi Arabia's sovereign wealth fund, the Saudi Public Investment Fund (PIF).

Niantic's games division has struggled in recent times, with Pokémon Go's player base declining from over 230 million monthly players at its peak to around 80 million currently. The company has also faced challenges in replicating the success of Pokémon Go with other titles, leading to the cancellation of multiple games and layoffs.

The sale will allow Niantic to focus on building out its standalone entity Niantic Spatial, which builds real-world 3D maps and is led by company CEO John Hanke. The Saudi PIF has become a significant player in the games industry, with financial stakes in organizations like Nintendo, EA, and Activision Blizzard.