Niantic, the developer behind the wildly popular augmented reality game Pokémon Go, is reportedly in advanced talks to sell its video game division to Scopely, a Saudi-owned gaming company, for a staggering $3.5 billion. According to Bloomberg, the sale would encompass Pokémon Go, the mobile game that captivated millions by blending the virtual world of Pokémon with real-world exploration.

While a source familiar with the matter, speaking on the condition of anonymity, indicated that the deal is not yet finalized, a confirmation could arrive within weeks if negotiations proceed successfully. Niantic, Scopely, and its parent company, Savvy Games Group, have declined to comment publicly on these reports.

The potential acquisition aligns with Savvy Games Group's aggressive expansion strategy. In April 2023, Savvy Games Group acquired Scopely for $4.9 billion, a move that followed the Saudi Arabian government's declared intention to acquire a leading games publisher. Scopely boasts a portfolio of successful mobile games, including The Walking Dead: Road to Survival, Stumble Guys, Marvel Strike Force, and Monopoly Go. Further solidifying its position in the gaming industry, Savvy Games Group also purchased ESL and FACEIT, two prominent esports organizations, for a combined $1.5 billion in 2022.

Crown Prince Mohammed bin Salman bin Abdulaziz articulated the Kingdom's vision, stating, “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. We are harnessing the untapped potential across the esports and games sector to diversify our economy, drive innovation in the sector, and further scale the entertainment and esports competition offerings across the Kingdom.”