Saudi Arabia has spent billions of dollars to establish itself as one of the biggest players in the global gaming industry [Getty]
Saudi Arabia‘s sovereign wealth fund has agreed to buy the games developer behind Pokémon Go in the latest multi-billion-dollar gaming acquisition by the fund.
The Public Investment Fund (PIF) will acquire the gaming business of San Franciso-based software developer Niantic for $3.5 billion, Scopely – a US-based mobile games company owned by the fund – confirmed on Wednesday.
Bloomberg had first reported the existence of talks between Niantic and Scopely in February.
Niantic specialises in augmented reality gaming and is best known for the mobile games Pokémon Go and Monster Hunter Now.
Pokémon Go remains one of the most popular video games in the world almost a decade after it was first released.
The AR game made more than $1 billion in revenue in 2024 and has around 30 million monthly active players.
Niantic’s gaming arm will become part of Scopely, which was purchased by the PIF in 2023 for almost $5 billion.
Scopely’s most popular game is currently Monopoly Go, which has brought in $3 billion in revenue since its launch in 2023.
The acquisition will further strengthen the fund’s position in the global games market, where it has spent billions of dollars of its oil wealth to become one of the industry’s most powerful players.
The PIF has sizeable stakes in several of the biggest video-games companies in the world, including Nintendo, Electronic Arts and Take-Two Interactive.
Saudi Arabia has also made big moves in the global Esports industry and has hosted several major tournaments.
Riyadh hosted the 2024 Esports World Cup and will organise the inaugural Olympic Esports Games which will take place in the Saudi capital in 2027.
The venture into Esports and gaming aligns with the PIF’s wider ambitions of consolidating its strength in the global sports and entertainment industries.
The PIF has spent billions raising its profile in global football, including with the £305 million purchase of Newcastle United in 2021.
Last year it was selected to host the 2034 World Cup.
It has set up a rival golf tour to the US PGA and has hosted a number of high-profile boxing and MMA fights.
Campaign groups have long accused the Saudi state of using sports to divert attention from its poor human rights practices and environmental policies, a practice known as ‘sportswashing’.
