Saudi Arabia’s Gaming Ambitions Reach New Heights as Scopely Acquires Niantic Labs’ Video Game Division for $3.5 Billion
Riyadh has been actively promoting the gaming industry since the launch of Vision 2030, with a national strategy aiming to contribute $13 billion to gross domestic product by 2030.
As part of this ambitious plan, Scopely, a US-based firm backed by Saudi Arabia’s Public Investment Fund (PIF), has signed a deal worth $3.5 billion to acquire the video game division of Niantic Labs. This acquisition is expected to further solidify Riyadh’s position as a global gaming destination.
The team employed to make games such as Pokémon GO, Monster Hunter Now, and Pikmin Bloom are included in the acquisition. Scopely stated that this takeover aligns with the Kingdom’s ambitions to establish itself as a global gaming hub, with a focus on creating industry-leading outcomes and exceptional player experiences.
Few games in the world have delivered the scale and longevity of Pokémon GO, which reached over 100 million players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokémon GO live events attracting millions of attendees.
Despite being launched nearly a decade ago, Pokémon GO is still one of the most popular games in the world, with over 20 million weekly active players. According to Scopely’s chief revenue officer and board member, Tim O’Brien, "After spending time with the Niantic team, it quickly became clear that this organization shares our inclination to create industry-leading outcomes and exceptional player experiences."
The games business of Niantic Labs generated over $1 billion in revenue in 2024, according to Scopely’s statement. In a separate release, the US-based firm said it would distribute an extra $350 million to its equity holders under the deal, yielding a total value of approximately $3.85 billion for the company’s shareholders.
In addition to the acquisition, Niantic will also spin off its geospatial AI business into a new firm named Niantic Spatial, under the leadership of its founder and CEO, John Hanke. The company will be funded with $250 million of capital, including $200 million from Niantic’s balance sheet and a $50 million investment from Scopely.
"I’m confident our games will thrive with Scopely," Hanke wrote on his LinkedIn page. "I’ve often talked about building ‘forever games,’ and I believe they will continue to be just that."
Since the launch of Vision 2030, Saudi Arabia has been actively promoting the gaming industry, with PIF already holding stakes in major companies such as Nintendo, Electronic Arts, and Take-Two Interactive. In 2024, the Kingdom also hosted the eSports World Cup, which carried a prize pool of over $60 million.
The acquisition is expected to have a significant impact on the gaming industry, both locally and globally. As Scopely continues to grow its portfolio of games, it will be interesting to see how they navigate the ever-changing landscape of the gaming world.
The takeover also marks a major milestone in PIF’s efforts to establish itself as a leading player in the global gaming market. With this acquisition, Riyadh is solidifying its position as a major player in the industry, and setting the stage for further growth and development in the years to come.
Conclusion
The acquisition of Niantic Labs’ video game division by Scopely marks a significant step forward for Saudi Arabia’s ambitions in the gaming industry. With this deal worth $3.5 billion, Riyadh is solidifying its position as a global gaming hub, with a focus on creating industry-leading outcomes and exceptional player experiences.
As the gaming industry continues to evolve and grow, it will be interesting to see how Scopely navigates the challenges and opportunities that lie ahead. With PIF’s backing and Niantic’s expertise, this partnership is poised to make a significant impact on the global gaming landscape.