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

Mobile game publisher Scopely, owned by the Saudi royal investment fund, has announced the acquisition of Pokémon GO and developer Niantic's game business for $3.5 billion.

The deal remains subject to regulatory approval but, should it go through, will be the biggest acquisition since Scopely itself was bought by the Saudi-owned Savvy Games investment group for $4.9 billion in 2023. Niantic also makes the likes of Monster Hunter Now and Pikmin Bloom, but Pokémon GO remains the company's biggest success by far, with an estimated 100 million monthly active users.

"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 Niantic CEO John Hanke. "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."

Saudi Arabia has been pouring billions into games in recent years, as part of a wider effort to make the country less dependent on oil. But Saudi investment is controversial because of the country's appalling human rights record, criminalisation of homosexuality (with punishments ranging from flogging to execution), and its crown prince Mohammed bin Salman, who is credibly accused by multiple intelligence agencies of ordering the 2018 murder and dismemberment of journalist and regime critic Jamal Khashoggi.

The Saudi investments in things like football are often described as "sportswashing", glossing over the regime's reality with expensive spectacle and associating itself with established brands. So perhaps we could call this Poké-washing.

Bin Salman says he doesn't care about accusations of "sportswashing" being used to distract from his government's human rights abuses. "If sportswashing is going to increase my GDP by way of one percent," said Bin Salman in 2023, "then I will continue doing sportwashing. I don't care."

Niantic thus joins an enormous list of Saudi gaming investments. The Saudis own a $1 billion chunk of Embracer Group, the major esports organisation ESL Gaming, 96% of SNK Gaming, roughly $3 billion worth of Activision Blizzard shares, around $1 billion of Take-Two shares, and 10% of Electronic Arts. As Bob Dylan once sang: "money doesn't talk, it swears."