Niantic, the innovative force behind the famed augmented reality title Pokémon Go, is reportedly exploring the sale of its game development division, according to a recent Bloomberg report citing anonymous sources.

The company is said to be in discussions with mobile game developer Scopely, a subsidiary of the Savvy Games Group based in Saudi Arabia, about a potential transaction valued at approximately $3.5 billion.

As of now, neither Niantic nor Scopely has released a comment regarding these negotiations.

Niantic has established itself as a leader in leveraging augmented reality to create engaging gaming experiences. Its inaugural game, Ingress, received significant acclaim for its innovative, location-based gameplay. However, Niantic’s reputation soared with the release of Pokémon Go in 2016, which quickly became a worldwide sensation.

While the company’s subsequent titles have seen varying degrees of success, none have reached the immense popularity of Pokémon Go. In 2022, Niantic made the difficult decision to cut 8% of its workforce and terminated four projects, including the beloved Harry Potter: Wizards Unite. By 2023, Niantic laid off 230 employees and canceled its games associated with the NBA and Marvel franchises.

Last year, the company revamped its Scaniverse application, allowing users to create 3D models of real-world objects, which can then be shared with developers. In November, Niantic also announced plans to develop a substantial geospatial model leveraging machine learning to “interpret scenes and relate them to millions of other global locations.”