Scopely Completes $3.5 Billion Acquisition of Niantic’s Gaming Division
In a major move within the mobile gaming sector, Scopely has announced the acquisition of Niantic’s gaming business for a staggering $3.5 billion.
Details of the Acquisition
This acquisition will see Niantic’s team of game developers join Scopely, a company that’s currently under the ownership of Saudi Arabia’s Savvy Games Group. As a part of the deal, Scopely will gain control over several popular titles, including Pokémon Go, Pikmin Bloom, and Monster Hunter Now.
Crunchbase data indicates that this acquisition stands out as the largest purchase of a private, venture-backed game developer in recent years, trailing only the $4.9 billion acquisition of Scopely by Savvy Games in 2023.
Background on Niantic
Niantic, headquartered in San Francisco, is well-regarded for its pioneering work in augmented reality gaming. Originally established as a startup under Google, Niantic later transitioned into an independent entity focused on enhancing real-world experiences through mobile apps.
Over the years, Niantic successfully raised over $770 million in equity funding from prominent investors such as Coatue, IVP, and Spark Capital between 2015 and 2021.
Financial Performance
According to Scopely, Niantic’s gaming business boasts more than 30 million monthly active players and generated over $1 billion in revenue during 2024. Notably, Pokémon Go alone attracted over 100 million users during the same year.
Future for Niantic and Its Technology
With this acquisition, Niantic is set to separate its technology platform, rebranding it as Niantic Spatial. John Hanke, the founder and CEO of Niantic, will take the helm of this new entity, focusing on innovations that strive to integrate artificial intelligence into real-world applications.
Current Trends in the Gaming Industry
The backdrop of this acquisition is a challenging period for gaming startups, with investment activities experiencing a downturn and funding levels at their lowest in years as of 2024, according to Crunchbase. The sector has also witnessed significant layoffs across major game studios since 2022. Despite these challenges, the gaming community remains engaged, with younger players dedicating substantial time to their favorite games each week.
