Key Takeaways
1. Niantic is selling its video game division to Scopely for $3.5 billion.
2. CEO John Hanke believes the deal will ensure ongoing support for Niantic’s games.
3. The agreement includes rights to popular games like Pokémon Go and Pikmin Bloom, along with Niantic’s development team.
4. Despite challenges, Niantic generated $1 billion in revenue last year.
5. The sale is pending approval from regulatory bodies.
Niantic is getting ready to cash in.
The company known for Pokémon Go and various augmented reality (AR) games, many of which are based on established video game franchises, has announced a deal to transfer its video game division to Scopely, a mobile app developer located in Saudi Arabia. The transaction is valued at a whopping $3.5 billion. This potential sale had been hinted at weeks ago but has now been officially confirmed.
CEO’s Insight on the Future
John Hanke, Niantic’s CEO, shared his thoughts about the agreement:
“Our games have always served as a way to bring folks together and spark a sense of adventure, and I truly believe they will keep doing just that under Scopely’s wing. This collaboration is a win for our players and offers the best path to ensure our games receive the ongoing support and funding they need to be ‘forever games’ that last for future players.”
What’s Included in the Deal
Along with the rights to Niantic’s popular games, which comprise Pokémon Go, Pikmin Bloom, and Monster Hunter Now, Scopely will integrate Niantic’s development team into its own staff.
Pokémon Go had a strong start but has faced challenges in staying relevant over the years. Niantic attempted to replicate its success with AR games based on other video game franchises, but none matched the massive appeal of Pokémon Go. However, Niantic still appears to be doing well financially; Scopely reported that Niantic generated $1 billion in revenue last year.
Regulatory Approval Needed
The sale of Niantic is still pending approval from regulatory bodies.
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