Niantic, the creator of the popular augmented reality game Pokémon Go, is reportedly negotiating a potential $3.5 billion sale of its video game division to Scopely, a Saudi-owned gaming company.

According to Bloomberg, the sale would encompass Pokémon Go, the widely successful mobile game that integrates real-world locations into its gameplay.

An anonymous source cited by Bloomberg indicated that while the deal isn't finalized, a confirmation could arrive within weeks if approved.

Niantic, Scopely, and its parent company, Savvy Games Group, have declined to comment publicly on the reported acquisition.

Savvy Games Group acquired Scopely in April 2023 for $4.9 billion, following the Saudi Arabian government's announcement of its intention to acquire a prominent games publisher. Scopely's portfolio includes several successful mobile games, such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

In 2022, Savvy Gaming Group also invested $1.5 billion in acquiring ESL and FACEIT, two leading esports organizations.

"Savvy Games Group is a key component of our ambitious plan to establish Saudi Arabia as the leading global center for the gaming and esports industry by 2030," stated Saudi Crown Prince Mohammed bin Salman bin Abdulaziz at the time. He further emphasized the initiative's role in economic diversification, technological innovation, and the expansion of entertainment and esports competitions within the Kingdom.