According to The Hollywood Reporter, there is currently a secret auction taking place between three major movie studios to acquire the rights to produce a “big-budget, live-action movie” based on the Pokémon franchise. The studios that are reportedly in the running for the movie are Legendary Entertainment, Warner Bros., and Sony.
Warner Bros. was reportedly an early favorite due to their previous ties to The Pokémon Company (they released Pokémon: The First Movie and its two sequels), but recently Legendary has emerged as a front-runner for the project. One problem with a deal made with Legendary is that the studio’s parent company, Dalian Wanda Group, is a Chinese company, and there have historically been tensions between China and Japan that could complicate relations.
Source: The Hollywood Report