Pokemon Go’s parent company Niantic is now worth $4 billion
Niantic, the parent developer company of Pokemon Go, is now worth $4 billion as investors pump in a fresh round of funding into the app developer. What’s interesting to note that Niantic or the maker of Fortnite – Epic Games are public. Both of the companies are privately held where Niantic just reached the $4 billion figure whereas Epic Games have crossed $15 billion thanks to a fresh round of funding this October.
Niantic raised around $200 million last year and its year-end value was around $2.7 billion. Epic Games value at the start of spring was around $4 billion, it has grown exponentially to $15 billion. To give some comparison, Take-Two Interactive which is the parent company of Rockstar (Grand Theft Auto and Red Dead Redemption) is worth $11.7 billion whereas Electronic Arts is worth $24.2 Billion and Activision Blizzard stands at $36.4 billion market cap.
If Niantic keeps on going at the current pace, they would probably be worth around $6 billion by mid-next year. However, it also depends on their games’ performance whether they are able to maintain their revenue streams or not. Pokemon Go when it was first launched was a huge success and it even skyrocketed Nintendo’s budget even though they had nothing to do with the game. Their reminder to investors regarding this matter sent their stock plummeting down.
Niantic is also working on a new title with Warner Bros which is called Harry Potter: Wizards Unite which might be another deal-breaker for them if they are able to differentiate it from the rest of offerings in Play Store/App Store. Harry Potter is as big a name as Pokemon, therefore, they won’t have any branding issues, the conversion would lie in the game they are developing.
What are your thoughts on Niantic’s performance over the past year? Do you think they will maintain their current growth pace? Let us know in the comments.