Niantic, the company known for popular augmented reality (AR) games like Pokémon GO, has announced a significant restructuring. This includes the sale of its gaming division to Scopely and the spin-off of its geospatial AI business into a new company, Niantic Spatial Inc.
Gaming Division Acquired by Scopely
In a landmark deal valued at approximately USD 3.5 billion, Scopely, a leading mobile games publisher, will acquire the gaming company’s portfolio, including Pokémon GO, Pikmin Bloom, and Monster Hunter Now. The deal comprises USD 3.5 billion from Scopely and USD 350 million in cash distribution from Niantic.
“Scopely’s focus on building and operating incredible live services, its exceptional experience working with the world’s biggest and most beloved intellectual property, and care for its player communities and game-making teams make it the perfect fit for our games,” the company stated in a press release.
Ed Wu, head of the Pokémon GO team, reassured players that the transition would ensure the “long-term support needed to be ‘forever games’ that will endure for future generations.” He emphasized that the existing team would remain in place and continue to develop the games, with Scopely providing additional resources.
“Scopely empowers their game teams as autonomous groups to go after the roadmaps that they’re inspired to pursue, and what each team believes is best for the player experience,” Wu explained.
The deal is expected to close in 2025, pending regulatory approvals.
Niantic Spatial Inc. Launches with USD 250 Million Funding
Simultaneously, the company announced the spin-off of its geospatial AI division into a new company, Niantic Spatial Inc., led by CEO John Hanke. The new entity will receive USD 250 million in funding, including $200 million from Niantic’s balance sheet and a USD 50 million investment from Scopely.
The Company’s Spatial platform will focus on developing and scaling its geospatial AI technology, including its third-generation digital map and the Niantic Spatial Platform. The platform integrates spatial computing, Extended Reality, Geographic Information Systems, and Artificial Intelligence, offering applications in various industries, from manufacturing to entertainment.
“Niantic Spatial’s goal is to lead the future of geospatial AI by building spatial intelligence that helps people better understand, navigate, and engage with the physical world,” the company stated.
The company is also developing a large geospatial model, a world model powered by large-scale machine learning designed to enhance spatial reasoning in large language models (LLMs). Moreover, Niantic Spatial will continue to operate Ingress Prime and Peridot as showcases for its platform technology.
A Decade of Innovation and Growth
Niantic, which spun out of Google nearly a decade ago, aimed to “overlay the world with rich digital experiences.” It’s games have attracted over 100 million players annually, fostering over a billion friend connections and facilitating over 30 billion miles of real-world exploration.
The company’s live events have also generated over a billion dollars in economic impact in host cities.
The restructuring reflects Niantic’s evolution into two distinct areas: gaming and geospatial AI. The sale to Scopely allows the gaming division to thrive under a specialized publisher, while the spin-off of Niantic Spatial enables the geospatial AI business to accelerate its growth.
“The rapid progress in AI reinforces our belief in the future of geospatial computing to unlock new possibilities for both consumer experiences and enterprise applications,” Niantic stated.
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