Niantic, well-known for its creation of Pokemon GO, is reportedly seeking to sell its gaming division to Scopely, a US-based entertainment company aligned with Saudi Arabia’s Savvy Games Group, in a transaction valued at over $3 billion.

Saudi Arabia’s heightened interest in the gaming sector includes stake acquisitions in companies like Nintendo.

This potential deal with Scopely indicates Saudi Arabia’s efforts to diversify its investment portfolio, evident in its aggressive market acquisitions.

This follows a decade after Pokemon GO, which revolutionized augmented reality gaming upon its launch in 2016, started to wane in revenue post-pandemic. In recent years, Niantic has invested in AR versions of games like Pikmin and Monster Hunter but may now pivot towards a sale amid declining revenues. A report cites that while discussions with Scopely are ongoing, there is no guarantee of a finalized agreement.

Saudi Arabia aims to become a key player in the global gaming industry, taking steps like hosting the first-ever Olympic eSports Games in 2025. The possible acquisition of Pokemon GO would signify a significant expansion of its gaming portfolio.