Niantic announced the sale of its gaming division, which includes mobile games Pokemon Go, Monster Hunter Now, and Pikmin Bloom, to Scopely, a mobile game developer from Saudi Arabia, for $3.5 billion.
The deal is subject to customary closing conditions, including regulatory approval. If approved, Scopely will also acquire related social programs such as Campfire and Wayfarer, the former connecting local communities of players in the real world and the latter allowing the creation of new locations for Niantic games.
"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," said Niantic founder and CEO John Hanke.
Pokemon GO is one of the most successful mobile games in history, with over 20 million weekly active users. Since its release in 2016, it has consistently remained in the top 10 most popular mobile games, with players spending an average of 40 minutes a day playing it. Combined with other games such as Pikmin Bloom and Monster Hunter Now, Niantic's gaming business is expected to generate over $1 billion in revenue by 2024.
If the deal is completed, Pokemon GO and other projects will join Scopely's extensive library of mobile games, which already includes highly successful projects such as Monopoly Go!, Stumble Guys, Star Trek Fleet Command, Marvel Strike Force, and others.
In addition, following the acquisition, Niantic will spin off its technology platform into a new company, Niantic Spatial Inc. Under Hanke's leadership, it will become a geospatial AI company that will create a next-generation map that will allow devices and machines to understand and interact with the physical world.