ByteDance is in advanced talks to sell its gaming subsidiary Moonton Technology to Saudi Arabia's Savvy Games Group for $6-7 billion, marking the Chinese tech giant's exit from large-scale game development.
ByteDance is in advanced negotiations with Saudi Arabia's Savvy Games Group over the potential sale of its gaming subsidiary Moonton Technology, in a deal valued between $6 billion and $7 billion, according to Reuters. Moonton is the developer of the hit mobile title Mobile Legends: Bang Bang. ByteDance acquired the studio in 2021 for an estimated $4 billion as part of its push into global gaming. If completed, the transaction would mark ByteDance's exit from large-scale in-house mid- and hardcore game development. Sources said both sides are moving quickly and could reach a definitive agreement as early as this quarter, though discussions remain ongoing and terms may still change. [Reuters]
The potential sale of Moonton represents a significant shift in ByteDance's gaming strategy. The Chinese tech giant acquired Moonton in 2021 for approximately $4 billion, betting on the studio's popular mobile game Mobile Legends: Bang Bang to establish a foothold in the global gaming market. However, the company appears to be pivoting away from large-scale game development, focusing instead on other areas of its business portfolio.
Savvy Games Group, the potential buyer, is a subsidiary of Saudi Arabia's Public Investment Fund (PIF) and has been aggressively expanding its presence in the global gaming industry. The group has already made several high-profile acquisitions and investments in gaming companies, positioning itself as a major player in the sector.
If the deal goes through, it would be one of the largest gaming acquisitions in recent years, reflecting the growing value and importance of mobile gaming in the global entertainment landscape. Mobile Legends: Bang Bang has been particularly successful in Southeast Asia and other emerging markets, making it an attractive asset for Savvy Games Group's expansion strategy.
The timing of this potential sale is noteworthy, as it comes amid increasing scrutiny of Chinese tech companies' international operations and investments. For ByteDance, divesting from Moonton could be a strategic move to streamline its business focus and potentially address regulatory concerns in various markets.
For Savvy Games Group, acquiring Moonton would significantly boost its gaming portfolio and provide access to a popular mobile gaming IP with a large and engaged user base. This move aligns with Saudi Arabia's broader strategy to diversify its economy and establish itself as a hub for the global gaming industry.
As negotiations continue, industry observers will be watching closely to see if this deal materializes and what it could mean for the future of mobile gaming and the broader tech landscape. The potential $6-7 billion valuation of Moonton also underscores the immense value placed on successful mobile gaming IPs in today's market.
The outcome of these talks could have ripple effects across the gaming industry, potentially influencing other major tech companies' strategies in the mobile gaming space and shaping the competitive landscape for years to come.
Comments
Please log in or register to join the discussion