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 encourages players to explore the real world in search of virtual Pokémon.

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 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 purchased ESL and FACEIT, two leading esports organizations, for a combined $1.5 billion.

"Savvy Games Group is a key component of our ambitious plan to establish Saudi Arabia as the leading global hub for the gaming and esports industry by 2030," stated Saudi Crown Prince Mohammed bin Salman bin Abdulaziz at the time. He further explained that this initiative aims to diversify the Saudi economy, foster innovation within the gaming sector, and expand entertainment and esports competition within the Kingdom.