Pokemon Go developer Niantic is reportedly in talks to sell its video game business to mobile publisher Scopely for $3.5 billion.
According to a report from Bloomberg, Niantic is contemplating exiting the world of game development to presumably focus on its other products–which include a geospatial AI model and XR visual editor Niantic Studio.
Several people familiar with the situation explained a deal could be announced in the coming weeks, and claimed the transaction would include Pokemon Go and other mobile titles.
The purported buyer, Scopely, is owned by Saudi multinational investment company Savvy Games Group, which itself is a subsidiary of Saudi Arabian sovereign wealth fund PIF.
Pokemon Go remains the MVP within Niantic’s video game business. The studio has launched other AR titles in a bid to replicate that success, but the results have been decidedly mixed.
Titles based on notable franchises like Pikmin and Monster Hunter remain active, but other projects such as Harry Potter: Wizards Unite, NBA All-World, and Marvel World of Heroes have all been scrapped.
Those cancellations came amid layoffs and office closures–with Niantic cutting 230 roles in 2023 after shifting away from internal game development.
Niantic and Scopely declined to comment on the situation when approached by Bloomberg.