Niantic in Talks for $3.5B Sale to Savvy Games Group
Deal News | Feb 19, 2025 | Zawya
Niantic, the developer behind the successful mobile game Pokémon Go, is reportedly in discussions to sell its video-game business to a unit of Savvy Games Group, a subsidiary of Saudi Arabia's Public Investment Fund (PIF), for $3.5 billion. This potential acquisition, which could be announced in the coming weeks, would include not just Pokémon Go but other mobile games as well. Despite the massive popularity of Pokémon Go, Niantic has struggled to replicate its success in subsequent titles, resulting in the cancellation of some projects in 2022 and 2023. Furthermore, in August 2024, Savvy Games Group and Niantic had signed a prior deal to expand Niantic's influence in the Middle East, specifically in Saudi Arabia, the UAE, and Egypt. Niantic originally emerged as an independent company after spinning out from Alphabet Inc. in 2015.
Sectors
- Video Game Development
- Investment
Geography
- United States – Niantic, the company being potentially acquired, is based in the US.
- Saudi Arabia – Savvy Games Group, the acquiring entity, is a unit of the Saudi Arabian Public Investment Fund (PIF).
Industry
- Video Game Development – The article discusses the potential acquisition of Niantic, a company engaged in developing popular mobile video games like Pokémon Go.
- Investment – Savvy Games Group's interest in acquiring Niantic highlights a significant investment activity involving a large transaction.
Financials
- 3.5 billion – The proposed sale price of Niantic's video-game business to Savvy Games Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Niantic | Target Company | Company | Developer of Pokémon Go, in talks to sell its video-game business. |
| Savvy Games Group | Bidding Company | Company | A subsidiary of Saudi Arabia's Public Investment Fund, interested in acquiring Niantic. |
| Public Investment Fund (PIF) | Parent Company | Government | The sovereign wealth fund of Saudi Arabia, parent of Savvy Games Group. |
| Alphabet Inc. | Other Company | Company | The former parent company from which Niantic was spun out in 2015. |