Tag: Scopely

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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Key Takeaways

1. Pokémon Go reached over 147 million monthly active users by May 2018 and achieved one billion downloads by 2019.
2. The game generated more than $6 billion in revenue for Niantic by 2020.
3. Niantic is rumored to be negotiating a sale of its video game division to Scopely for at least $3.5 billion.
4. Scopely was acquired by Savvy Games Group in April 2023 for $4.9 billion and has a portfolio of popular games.
5. Pokémon Go Plus+ is a Bluetooth device that tracks sleep and performs functions like spinning PokéStops and throwing Poké Balls, currently priced at $61.92 on Amazon.

Released in July 2016, Pokémon Go quickly gained popularity, reaching over 147 million monthly active users by May 2018. Less than a year after that, it achieved a remarkable milestone of one billion downloads worldwide. By 2020, this augmented reality sensation had generated more than $6 billion in revenue for its publisher, Niantic. Now, there are rumors that Niantic might sell its video game division to Saudi-owned Scopely, with a hefty price tag of at least $3.5 billion.

Ongoing Negotiations

Sources close to Niantic, who chose to remain anonymous, shared with Bloomberg that discussions about the sale are still in progress. They mentioned that Pokémon Go will likely be part of the acquisition, but did not provide any details on Niantic’s other successful augmented reality game, Ingress. Launched in late 2013, Ingress celebrated reaching 20 million downloads by November 2018. Once the deal gets final approval, it will be made public, though this process is expected to take a few weeks.

Scopely’s Recent Acquisitions

The company looking to buy Niantic, Scopely, was itself acquired by Savvy Games Group in April 2023 for $4.9 billion. Prior to that, Savvy Games Group had purchased ESL and FACEIT in 2022, with those deals totaling around $1.5 billion. Scopely’s portfolio includes popular titles such as Monopoly Go, The Walking Dead: Road to Survival, and Marvel Strike Force, among others.

Pokémon Go Plus+

Besides being a standalone mobile game, Pokémon Go has also led to the creation of the Pokémon Go Plus+, a Bluetooth device designed to track sleep. Its main functions, however, are to automatically spin PokéStops and throw Poké Balls. This device is currently available on Amazon for $61.92.

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