Niantic Labs sells his Video Division Division to Saudi Arabia owned by Scopely for $ 3.5 billion in the US, as the US company for extended reality is switching to geo-prostor technology after failing to recreate the success of his hit Smash 2016 Pokemon Go.
The agreement, announced on Wednesday, is also progressing in Saudi Arabian ambitions to become a “top -notch global center” for playing.
Fund of the sovereign wealth of the kingdom, through smart games, bought Scopely for $ 4.9 billion in 2023 as part of the wider push of the earth to diversify beyond fossil fuels.
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The company said it would distribute an additional $ 350 million to its capital owners in accordance with the agreement.
He will also take his business with geoprous artificial intelligence to a new company called Niantic Spaelial, led by Niantic founder and CEO John Hanke, who was once a key leader of Google Division responsible for Google Maps, Google Earth and Google Street View.
The geospacial AI, or only geoai, combines traditional geoprastage analysis and mapping with AI, to find a faster and deeper data analysis.
Niantic Spanial will be funded with $ 250 million in capital capital – $ 200 million from Niantic balance and $ 50 million from Scopely. All Niantic -the original investors will continue to be shareholders of Niantic Spanial.
This move follows a few difficult years for Nianantic.
After Pokemon Go She became one of the most successful mobile games, the company struggled to repeat its success and had to release employees in 2022 and 2023. Harry Potter: Wizards unite Mobile game 2022.
For Saudi Arabia, the already growing center for playing and the Esports World Cup, the contract is based on a plan to invest almost $ 38 billion in the USA initiatives relating to the industry through their smart game group.
Sawvy Games is the main investor in the global video games, including Nintendo, with a share of about 7.54 percent after a small reduction in interest last year.
