(Nov 27): TikTok owner ByteDance Ltd is in talks to sell gaming studio Shanghai Moonton Technology Co to Saudi Arabia-based Savvy Games Group, according to people familiar with the matter.
The discussions mark a revival of the Chinese tech company’s plan to sell the maker of the Mobile Legends: Bang Bang game, which it shelved last year. ByteDance acquired Moonton in 2021 at a valuation of about US$4 billion ($5.19 billion).
Negotiations are ongoing and may not result in a transaction, the people said, asking not to identified because the information is private.
ByteDance didn’t respond to requests for comment. Savvy Games declined to comment.
Savvy Games, which is also involved in e-sports, was founded by the Public Investment Fund (PIF) in 2021. The PIF has been pursuing video game investments with the goal of making Saudi Arabia a hub for the sector. The fund, alongside Silver Lake Management and Jared Kushner’s Affinity Partners, recently agreed to acquire Electronic Arts Inc for about US$55 billion.
A deal for Moonton would add to the momentum in mergers and acquisitions involving Chinese companies this year, with volume climbing 34% from the same period in 2024 to reach US$214 billion, according to data compiled by Bloomberg.
See also: China’s Anta Sports said to explore potential bid for Puma — Bloomberg
ByteDance has been retreating from video games for a while, cutting hundreds of jobs and winding down its flagship Nuverse gaming brand after failing to take market share from Tencent Holdings Ltd. Meanwhile, gaming developer valuations have fallen from a Covid-era peak, hurt by the rise of streaming and other online services competing for users.
Moonton was founded in 2014. In addition to Mobile Legends: Bang Bang, which has struck a chord with fans in Southeast Asia, its titles include shooting game Project: Extraction and role-playing game Crystal of Atlan.
ByteDance shares changed hands at a valuation of US$480 billion last week, when investment firm Capital Today bought a block. The price escalated rapidly in an auction involving several bidders, people familiar with the process said.
Uploaded by Tham Yek Lee
