Saudi Investment Fund pays $3.5bn to capture Pokémon Go

The Public Investment Fund of Saudi Arabia, commonly referred to as PIF, has made headlines by agreeing to pay a staggering $3. 5 billion to acquire the gaming division of Niantic, the company behind the immensely popular mobile game Pokémon Go. This game has captivated millions of players around the world by allowing them to explore their surroundings and catch virtual creatures known as Pokémon, which appear on their mobile devices through augmented reality technology. Despite being launched nearly a decade ago, Pokémon Go continues to thrive, boasting around 30 million active players each month. This acquisition is part of Saudi Arabia's broader strategy to invest heavily in its gaming sector, which has seen significant financial commitments in recent years. In addition to Pokémon Go, Niantic is known for other titles such as Monster Hunter Now and Pikmin Bloom, all of which will now be under the umbrella of Scopely Inc. This company is a major player in the mobile gaming industry, with its flagship game, Monopoly Go, achieving over 50 million downloads and generating more than $3 billion in revenue. The Pokémon franchise itself is a collaborative effort between three companies: Nintendo, Game Freak, and Creatures, which granted Niantic the rights to develop the Pokémon Go game. Ed Wu, the leader of the Pokémon Go team at Niantic, expressed optimism about the acquisition in a recent blog post, stating that he views this move as a positive development for the game's future. He emphasized that Pokémon Go is more than just a game for him; it represents his life's work. Wu acknowledged that while the game will continue to evolve, the core principles of how it is created and developed will remain unchanged, and he hopes to enhance the player experience even further. Saudi Arabia is positioning itself as a formidable force in the gaming industry, with the PIF holding stakes in some of the largest publishers, including Nintendo, Electronic Arts, and Take-Two Interactive. The country has also made significant strides in the eSports arena, hosting major events such as last year's eSports World Cup, which featured a prize pool exceeding $60 million. Looking ahead, Riyadh is set to host the Olympic eSports Games in 2027. The PIF's financial power stems from the vast wealth generated by the country's oil resources, which has allowed it to invest heavily in various sports, including golf, boxing, and football. Notably, in 2021, the fund acquired Newcastle United for a reported £300 million. The PIF is overseen by Crown Prince Mohammed bin Salman, who has faced scrutiny and criticism for the government's human rights record. A 2019 report from the United Nations indicated that the Saudi state was responsible for the death of journalist Jamal Khashoggi, who was known for his critical stance towards the government. The Saudi government has consistently denied these allegations, maintaining its position on the matter.