Jagex owner Carlyle Group is reportedly looking to offload the RuneScape developer, two years after its acquisition.
Sources close to the matter told Reuters that Carlyle is exploring either selling the company or publicly listing it.
The group is working with advisers from Aream & Co and Morgan Stanley to weigh up its options, with plans to hold an auction process towards the end of the year.
One source said private equity firms are likely to be among the potential buyers, as they can use Jagex in order to buy a selection of smaller games businesses.
The Runescape developer is expected to be valued for as much as £1 billion.
However, this processes is still in its early stages and the sources warned that a deal is not certain, in part because it is subject to market conditions.
GamesIndustry.biz has reached out to Jagex for comment.
Jagex has been through several changes of ownership in the last ten years.
It was acquired by a group of Chinese investors and made part of Zhongji Holding (itself part of Shangai Hongtou Network Technology) in 2016, before being sold to US-based global management firm Macarthur Fortune Holding in 2020 for $530 million.
It was then sold to the Carlyle Group the following year.
Jagex has also begun making acquisitions of its own, picking up US studio Pipeworks and UK developer Gamepires in 2022.
Sign up for the GI Daily here to get the biggest news straight to your inbox