ByteDance in Advanced Talks to Sell Moonton to Saudi Savvy Games for $6-7B

ByteDance, the Chinese tech giant behind TikTok, is in advanced talks to sell its game studio Moonton to Saudi Arabia's Savvy Games Group for between $6 billion and $7 billion, according to sources familiar with the matter.

Moonton, headquartered in Shanghai, is best known for developing Mobile Legends: Bang Bang, one of the world's most popular mobile multiplayer online battle arena (MOBA) games. The game has amassed hundreds of millions of players globally since its launch in 2016 and has become particularly dominant in Southeast Asia, where it rivals Tencent's Honor of Kings in popularity.

The potential sale represents a significant move in the global gaming industry and aligns with Saudi Arabia's aggressive expansion into the sector. Savvy Games Group, established in 2021 with a $38 billion initial investment from Saudi Arabia's Public Investment Fund, has been on an acquisition spree as part of Crown Prince Mohammed bin Salman's Vision 2030 initiative to diversify the kingdom's economy away from oil dependency.

This deal would mark one of the largest gaming acquisitions in recent years and would give Savvy Games a major foothold in the mobile gaming market. The Saudi fund has already made several high-profile investments in the gaming industry, including stakes in Nintendo, Activision Blizzard, and EA, as well as acquiring companies like Scopely and Vindex.

For ByteDance, the sale would represent a strategic divestment. While the company has been expanding its gaming portfolio in recent years, including developing its own titles and acquiring studios, the gaming sector has proven challenging. ByteDance has faced stiff competition from established players like Tencent and NetEase in China's crowded gaming market.

The timing of the potential sale is notable given the current geopolitical tensions between China and Saudi Arabia, as well as broader concerns about Chinese tech companies' international operations. ByteDance has faced intense scrutiny over TikTok's data practices and security concerns in multiple countries, including the United States, where there have been efforts to force a sale of the app's US operations.

Sources indicate that negotiations are at an advanced stage, though the deal is not yet finalized and could still fall through. If completed, the transaction would likely face regulatory scrutiny in multiple jurisdictions given the strategic importance of both the gaming industry and cross-border technology transfers.

The sale price of $6-7 billion reflects Moonton's strong market position and revenue potential, particularly in Southeast Asia where Mobile Legends: Bang Bang has become a cultural phenomenon. The game has also gained traction in other regions and has a competitive esports scene with tournaments offering substantial prize pools.

For Savvy Games, acquiring Moonton would provide immediate access to a proven hit game with a massive global player base, complementing its existing portfolio of gaming investments and helping to establish Saudi Arabia as a significant player in the global gaming industry.

The deal comes amid a broader trend of Middle Eastern investment in technology and entertainment sectors, with Saudi Arabia and other Gulf states increasingly looking to technology acquisitions as a means of economic diversification and global influence projection.

Industry analysts note that the potential acquisition could have ripple effects throughout the mobile gaming ecosystem, potentially influencing game development trends, competitive dynamics, and monetization strategies across the sector.

ByteDance has not commented publicly on the negotiations, and Savvy Games Group has declined to confirm or deny the reports. The companies involved are expected to provide updates if and when a formal agreement is reached.

The gaming industry has seen significant consolidation in recent years, with major players seeking to expand their portfolios through acquisitions. This potential deal would be among the largest in the mobile gaming segment and could signal further consolidation to come as companies seek to gain competitive advantages in an increasingly crowded market.

Mobile Legends: Bang Bang's success has been built on its accessibility, free-to-play model, and regular content updates that keep players engaged. The game's popularity in Southeast Asia has made it a valuable asset, and its potential transfer to Saudi ownership could have implications for the regional gaming landscape.

The transaction, if completed, would represent another step in Saudi Arabia's ambitious plans to become a global gaming hub, with the kingdom investing billions in the sector as part of its broader economic transformation strategy.