Niantic, the company behind the mobile sensation Pokémon GO, is reportedly in talks to sell its gaming division to Scopely, a mobile game developer owned by Saudi Arabia's Savvy Games Group.
According to Bloomberg, the deal is valued at approximately $3.5 billion and could be announced in the coming weeks.
If finalized, the sale would include Pokémon GO and Niantic's other mobile games.
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Sources reportedly caution that discussions are ongoing with no guarantee of a completed agreement.
Pokémon GO became a worldwide phenomenon after its launch in 2016, with a winning formula that combined augmented reality with real-world exploration to enthrall millions of players.
Despite its massive success, Niantic has struggled to replicate the game's impact with later releases.
In recent years, the company has cut jobs and shut down multiple projects, including Harry Potter: Wizards Unite in 2022 and other NBA and Marvel-themed games in 2023.
Aside from gaming, Niantic has focused on geospatial technology, using augmented reality to create 3D scans of real-world locations.
Last year, it announced plans to build a large-scale machine-learning model to connect digital scenes globally.
Pokémon GO is more than just a game — it's a globally recognized brand based on the best-selling franchise of all time.
By selling it to Scopely, Niantic is handing off a cultural phenomenon that could either see new expansion under its new owner or spell disaster for the game.
If Scopely capitalizes on its expertise in live-service games, it could introduce new monetization strategies and content updates to keep players engaged and sustain long-term growth.
Ultimately, its success will depend on balancing innovation with the core experience that made Pokémon GO a global hit.
Saudi Expansion and Scopely's Role
Scopely, which was acquired by Savvy Games Group for $4.9 billion in 2022, has been expanding its portfolio with major mobile titles.
Earlier this year, Savvy CEO Brian Ward expressed interest in acquiring a "genre-leading" mobile game, positioning Pokémon GO as a prime candidate.
This potential acquisition aligns with Saudi Arabia's broader strategy to diversify its economy by investing in the gaming industry.
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Niantic and Savvy share a business relationship, having partnered in August to expand Niantic’s footprint across Saudi Arabia, the UAE, and Egypt.
If the deal goes through, it would mark a major shift for Niantic, which spun off from Google in 2015.
For Scopely and its parent company, acquiring the bestselling game would also be a significant step in cementing their influence in the mobile gaming sector.
Meanwhile, Pokémon became the star of McDonald's newest Happy Meal boxes last month, which came with the franchise's beloved trading cards.
