Niantic is reportedly engaged in negotiations to sell its video game division to Scopely in a deal valued at $3.5 billion

The creator of Pokémon Go, Niantic, is reportedly exploring the possibility of selling its gaming assets to Scopely, a division of Savvy Games Group.

Although no official statements have been made by either Niantic or Scopely, Bloomberg reports that the agreement might involve Niantic's flagship game, Pokémon Go.

The transaction, if finalized, is speculated to have a potential value of up to $3.5 billion and could be publicly disclosed soon.

Scopely was purchased by Savvy Games Group, a Saudi Arabian multinational investment company, in July 2023 for a noteworthy $4.9 billion. Recently, Nika Nour was hired as SVP and head of international business development.

Saudi Arabia has been intensifying its presence in the gaming and esports sectors, having allocated $38 billion through its Public Investment Fund. This fund holds investments in firms such as Electronic Arts, Nintendo, and Nexon and Capcom. It is also organizing the first-ever Olympic Esports Games scheduled for 2027.

These financial activities have attracted criticism due to Saudi Arabia's human rights issues, particularly concerning gender inequalities and the legal status of homosexuality, which can lead to severe punishments including life sentences or execution.