Scopely Acquiring Niantic’s Games Division for $3.5 Billion

Pokémon Go is under new management

Well here’s an event. Mobile gaming giant Scopely, developers and publishers of Monopoly Go!, Stumble Guys, Star Trek Fleet Command and Marvel Strike Force, is set to acquire the games division of software developer Niantic, behind such games as Pikmin Bloom, Monster Hunter Now, and probably biggest of all, Pokémon Go, in a deal valued at $3.5 billion.

As with any corporate transaction, it is subject to regulatory approvals. Under the terms, Niantic’s game teams will continue to be overseen by studio heads Kei Kawai and Ed Wu as they are absorbed into Scopely’s workforce of approximately 2,300 employees. Scopely is a wholly-owned subsidiary of a Saudi Arabian company called Savvy Games, itself owned by the Saudi Arabian government’s Public Investment Fund. They are also acquiring the Campfire and Wayfarer apps.

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Once the acquisition is complete, Niantic will spin off its technology platform into a new standalone entity, Niantic Spatial Inc, which will be led by company founder and CEO John Hanke. The new organization will be a “geospatial AI company powered by a next generation map, enabling devices and machines to understand and interact with the physical world.” Ew. The company is holding onto AR games Ingress Prime and Peridot, which will continue operation under them.

“Scopely has always been focused on cultivating meaningful communities through a shared love of play, and the Niantic games organization is one of the best in the world at this endeavor. We are extremely inspired by what the team has built over the last decade, delivering innovative experiences that captivate a vast, enduring global audience and get people out in the real world. We look forward to further accelerating the team’s creativity through our partnership,” said Tim O’Brien, Scopely’s Chief Revenue Officer and Board Member. “Few games in the world have delivered the scale and longevity of Pokémon GO, which reached over 100 million players just last year. The experience also stands apart for its unique ability to foster in-person connections, with Pokémon GO live events attracting millions of attendees. After spending time with the Niantic team, it quickly became clear that this organization shares our inclination to create industry-leading outcomes and exceptional player experiences. We look forward to a bright future ahead.”

Niantic founder Hanke and Go senior vice president Wu each put out their own statements as well, with Hanke stating “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,” said John . “Scopely shares our focus on building and operating incredible live services, has exceptional experience working with the world’s biggest and most beloved intellectual properties, and cares deeply about its player communities and game-making teams. 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.”

Wu chimed in with “It’s been an incredible joy to serve hundreds of millions of Trainers in our real-world community for the past 10 years, and I truly believe the best is yet to come. Our mission remains clear: to inspire people to discover Pokémon in the real world together. With Scopely’s full commitment, experience, and resources, we’re going to make Pokémon Go the very best it can be – from incredible battles for thousands of Trainers at a time at our live events to new ways to connect to your friends and community. Most importantly, we’ll remain focused on the excitement and experience of discovering Pokémon in the real world.”

404 Media pointed out a lack of transparency regarding the handling of user data, especially location data. The concern had to do with Saudi Arabia, a country with an “egregious” human rights record, previously passed a data protection law and regulations which grant extensive power to government agencies to access personal data based on undefined “security reasons”. This forced another statement from the company that reads “Protecting player privacy and data is of the utmost importance to both Scopely and Niantic. Player data always has and will continue to be handled in accordance with strict data privacy laws and regulations, as well as stored exclusively on U.S.-based servers. We never have and never will sell data to third parties. Player data will continue to be held in the U.S. following the acquisition. Scopely maintains a fully autonomous and independent operational model distinct from Savvy and the PIF, including retaining full sovereignty over its technology ecosystem.”

The company iterated that precise location data for Niantic players is only retained briefly, only used for essential game operations like cheating reduction and bug fixes. They claim this data is removed from Niantic systems if and/or when it is not needed anymore. They reminded that players can opt-in to share scans or video of public places which will be submitted anonymously and provided to Niantic Spatial.

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Sources: Variety, Animation Magazine