Nintendo Owns 32% of The Pokémon Company, Which Has an Ownership Stake in Niantic
As a hardcore Nintendo fan, I‘ve dug into this question that many gamers have asked. And the short answer is: we don‘t know for sure. Nintendo has not publicly disclosed the exact percentage of Pokémon Go developer Niantic it owns through its part-ownership of The Pokémon Company. But as an industry expert, I have some well-informed theories.
Niantic: From Google Spin-Off to $5 Billion Gaming Behemoth
Most gamers know Niantic exploded onto the scene in 2016 with Pokémon Go‘s launch. The augmented reality mobile game was a collaboration between Niantic, The Pokémon Company, and Nintendo. And it became a global phenomenon, amassing over $5 billion in total revenue.
But Niantic‘s origins trace back to an internal Google startup focused on augmented reality gaming. Niantic then spun off as an independent company in 2015, raising funds from Google, Nintendo, The Pokémon Company and other investors.
Known Niantic Investors
- The Pokémon Company
- Nintendo
- Venture capital firms
So Nintendo came aboard as an investor through its part-ownership of The Pokémon Company.
Nintendo‘s Stake via The Pokémon Company
Public records show Nintendo owns 32% of The Pokémon Company. And we know The Pokémon Company has invested directly in Niantic. But Niantic and its investors have not disclosed exact ownership percentages.
Still, through my industry connections and analysis as a gaming business expert, I have some educated theories on the range.
Likely Ownership Range
My speculation is The Pokémon Company‘s direct stake likely falls somewhere between 5% to 15%.
| Investor | Ownership Range |
|---|---|
| The Pokémon Company | 5-15% |
Factoring Nintendo‘s 32% ownership of The Pokémon Company, that puts Nintendo‘s indirect piece of Niantic likely between 1.5% and 5%.
Again, this is an estimated range based on my expertise. But it gives gamers insight into the dynamics.
Why Niantic Keeps Exact Ownership Percentage Private
As both a gamer and someone knowledgeable on gaming companies, I have thoughts on why Niantic doesn‘t disclose precise ownership details.
A few likely reasons:
- Maintain strategic flexibility for future funding rounds. Keeping specifics private allows more options.
- Avoid public scrutiny of ownership dynamics as company matures. This is common with younger startups.
- Concentrate public focus on products rather than ownership percentages. This fits Niantic‘s brand strategy.
Based on Niantic‘s track record, I expect them to maintain the majority control of the company going forward.
The Future Looks Bright for Nintendo and Niantic
While the exact numbers are hazy, it‘s clear Nintendo benefits from Niantic‘s success through its minority stake.
And the companies seem primed for even closer collaboration going forward. Nintendo franchises offer huge augmented reality mobile potential.
So as a lifelong gamer, I think the future looks very bright for the Nintendo-Niantic relationship! Their partnership history and ownership connections suggest to me even more mega hits are in the pipeline.
What an exciting time to be following gaming business developments as new AR titles and metaverse experiences develop! As always, I‘ll be reporting back on the latest as an industry insider.
