Scopely, a well-known name in the mobile gaming industry, has officially announced its acquisition of Niantic’s gaming division in a massive deal valued at $3.5 billion. The deal marks another major move in the gaming sector, further solidifying Scopely’s position in the market.
Under this agreement, Niantic’s game development team will transition to Scopely, which is owned by Saudi Arabia’s Savvy Games Group. Niantic, best known for its success with augmented reality (AR) gaming, has made significant contributions to the mobile gaming industry. The company, headquartered in San Francisco, is renowned for developing Pokémon Go, the globally popular AR game that captivated millions of players.
With this acquisition, Scopely not only inherits Niantic’s portfolio but also integrates its team of developers. Scopely is already recognized for its successful mobile games, including Monopoly Go, which played a crucial role in its own acquisition by Saudi Arabia’s Savvy Games Group for $4.9 billion in 2023. The acquisition of Niantic’s gaming business is the largest private transaction in the gaming sector since then, reinforcing Scopely’s dominance.
Niantic’s Strategic Shift and the Future of Mobile Gaming
The deal also results in Niantic spinning off its technology platform into a new entity called Niantic Spatial. John Hanke, Niantic’s founder and longtime CEO, will lead the newly formed company, focusing on its augmented reality platform and AI-driven experiences. Hanke envisions Niantic Spatial as a bridge between digital content and real-world interactions, emphasizing innovation in AR technology.
Despite challenges in the gaming industry—marked by layoffs and declining venture funding—gaming engagement remains strong, particularly among younger audiences. Niantic’s gaming business, which attracts over 30 million active players each month and generated more than $1 billion in revenue in 2024 alone, will now be under Scopely’s umbrella.
This acquisition is a significant milestone for Scopely, reflecting its continued expansion after being acquired by Savvy Games Group last year. With Pokémon Go still engaging over 100 million players in 2024, the gaming industry’s potential for innovation and profitability remains high.
