Niantic, the creator of the wildly 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. Bloomberg first reported the news, citing an anonymous source who 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.

The potential sale would likely include Pokémon Go, the location-based mobile game that has captivated millions of players worldwide. This follows Savvy Games Group's acquisition of Scopely in April 2023 for $4.9 billion, a move that came after the Saudi Arabian government expressed its intention to acquire a leading games publisher. Scopely's portfolio includes successful mobile titles such as The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go.

Savvy Games Group further solidified its position in the gaming industry with the $1.5 billion purchase of ESL and FACEIT, two prominent esports companies, in 2022. This aggressive expansion reflects Saudi Crown Prince Mohammed bin Salman bin Abdulaziz's broader vision: "Savvy Games Group is one part of our ambitious strategy aiming to make Saudi Arabia the ultimate global hub for the games and esports sector by 2030," he stated previously. The goal, he explained, is to diversify the Saudi economy, foster innovation within the gaming sector, and expand entertainment and esports offerings within the Kingdom.