Pokemon Go developer confirms sale to Saudi-owned Scopely

Niantic is about to (Pokémon) go to the bank.

The developer behind Pokémon Go and other augmented reality (AR) games (many of which use existing video game IPs) announced it will sell its video game division to Scopely, a smartphone software developer owned by the Saudi Arabian company Savvy games Group. The sale is valued at $3.5 billion. This sale was speculated a few weeks ago but has now been officially confirmed. 

Speaking on the deal, Niantic's CEO John Hanke said:

Niantic games have always been a bridge to connect people and inspire exploration, and I am confident they will continue to do both as part of Scopely. I firmly believe this partnership is great for our players and is the best way to ensure that our games have the long-term support and investment needed to be ‘forever games’ that will endure for future generations.

In addition to the rights for Niantic's games (which include Pokémon Go, Pikmin Bloom, and Monster Hunter Now), Scopely will also fold Niantic's team of developers into its workforce.

Despite its initial success, Pokémon Go has struggled for relevancy in recent years. Niantic tried to catch lightning in a bottle by developing AR games using other video game IPs, but none came close to the popularity of Pokémon Go. Still, Niantic seems to remain quite profitable; Scopely claims that Niantic pulled in $1 billion in revenue last year. 

Niantic's sale is still awaiting regulatory approval.