Mobile gaming company Scopely announced this morning that it will acquire Pokémon Go maker Niantic’s games business in a deal valued at $3.5 billion.
Under terms of the deal, Niantic’s game developers will join Scopely, which is itself owned by Saudi Arabia’s Savvy Games Group. Scopely will also own Niantic’s games, including the games Pikmin Bloom and Monster Hunter Now, as well as Pokémon Go and other titles.
The purchase represents the largest acquisition of a private, venture-backed game developer in a couple years, per Crunchbase data. The last deal of greater magnitude was Savvy’s purchase of Scopely, publisher of Monopoly Go and other popular titles, for $4.9 billion in 2023.
Previously, San Francisco-based Niantic was a prodigious venture fundraiser, best known for augmented reality games that allowed users to parlay mobile apps into experiences in the physical world. The company began as a startup within Google and later launched as an independent company.
Between 2015 and 2021, Niantic secured at least $770 million in known equity investments, with Coatue, IVP and Spark Capital among its lead investors.
Per Scopely, Niantic’s games business pulls in over 30 million monthly active players and drove more than $1 billion in revenue in 2024. Pokémon Go alone had over 100 million users in the course of 2024.
With the acquisition of its gaming business, Niantic will spin off its technology platform into a new standalone entity, Niantic Spatial. John Hanke, Niantic’s founder and longtime CEO, will lead the new company, which he said will focus on “building the models that will help AI move beyond the screen and into the real world.”
The Niantic purchase comes amid a sluggish period for gaming-related startup investment, with funding to the space falling to the lowest point in years in 2024, per Crunchbase data. It’s been a difficult period for developers as well, with mass layoffs at major game studios that began in 2022 and continued into 2024.
That said, game-playing isn’t showing signs of slowing down, with younger gamers in particular spending hours each week on their favorite titles.
Related Crunchbase Pro list:
Related reading:
Illustration: Dom Guzman
Stay up to date with recent funding rounds, acquisitions, and more with the
Crunchbase Daily.
