Saudi Arabia buys Pokémon GO maker for $3.5 billion with a ‘B’

Cellular recreation writer Scopely, owned by the Saudi royal funding fund, has introduced the acquisition of Pokémon GO and developer Niantic’s recreation enterprise for $3.5 billion.

The deal stays topic to regulatory approval however, ought to it undergo, would be the largest acquisition since Scopely itself was purchased by the Saudi-owned Savvy Video games funding group for $4.9 billion in 2023. Niantic additionally makes the likes of Monster Hunter Now and Pikmin Bloom, however Pokémon GO stays the corporate’s largest success by far, with an estimated 100 million month-to-month energetic customers.

“Niantic video games have at all times been a bridge to attach folks and encourage exploration, and I’m assured they may proceed to do each as a part of Scopely,” mentioned Niantic CEO John Hanke. “Scopely shares our deal with constructing and working unbelievable dwell providers, has distinctive expertise working with the world’s largest and most beloved mental properties, and cares deeply about its participant communities and game-making groups.

“I firmly imagine this partnership is nice for our gamers and is one of the simplest ways to make sure that our video games have the long-term assist and funding wanted to be ‘perpetually video games’ that can endure for future generations.”

Saudi Arabia has been pouring billions into video games lately, as a part of a wider effort to make the nation much less depending on oil. However Saudi funding is controversial due to the nation’s appalling human rights file, criminalisation of homosexuality (with punishments starting from flogging to execution), and its crown prince Mohammed bin Salman, who’s credibly accused by a number of intelligence companies of ordering the 2018 homicide and dismemberment of journalist and regime critic Jamal Khashoggi.

The Saudi investments in issues like soccer are sometimes described as “sportswashing”, glossing over the regime’s actuality with costly spectacle and associating itself with established manufacturers. So maybe we might name this Poké-washing.

Bin Salman says he would not care about accusations of “sportswashing” getting used to distract from his authorities’s human rights abuses. “If sportswashing goes to extend my GDP by the use of one %,” mentioned Bin Salman in 2023, “then I’ll proceed doing sportwashing. I do not care.”

Niantic thus joins an infinite checklist of Saudi gaming investments. The Saudis personal a $1 billion chunk of Embracer Group, the main esports organisation ESL Gaming, 96% of SNK Gaming, roughly $3 billion price of Activision Blizzard shares, round $1 billion of Take-Two shares, and 10% of Digital Arts. As Bob Dylan as soon as sang: “cash would not discuss, it swears.”