ByteDance Nears $6 Billion Sale of Moonton Technology to Savvy Games

ByteDance, the parent company of TikTok, is reportedly in advanced negotiations to sell its subsidiary, Moonton Technology, to Savvy Games Group for between $6 billion and $7 billion. This information comes from a report by Reuters, which cites sources indicating that the deal may be finalized by the end of this quarter.

The discussions include broad terms that have already been agreed upon, although Savvy Games has declined to comment on the situation. Both ByteDance and Moonton Technology did not respond to requests for comments regarding the potential sale. This development follows earlier reports from November 2022, suggesting that ByteDance was contemplating a divestment of the Shanghai-based developer.

Potential Impact on ByteDance’s Gaming Strategy

The sale of Moonton Technology, known for its popular game Mobile Legends, marks a significant shift for ByteDance if it proceeds. The company acquired Moonton in 2021, and reports suggest that this move could signal ByteDance’s major retreat from the online gaming sector. In 2024, ByteDance confirmed its discussions to sell parts of its gaming business, with Tencent being mentioned as a potential buyer at that time.

Savvy Games Group, which is backed by Saudi Arabia’s Public Investment Fund (PIF), holds stakes in several major gaming companies, including Nintendo, Capcom, Nexon, and Activision Blizzard. The PIF is also involved in a consortium acquiring Electronic Arts in a deal valued at $55 billion. If the acquisition of Moonton Technology goes through, it would expand Savvy Games’ portfolio significantly.

The implications of such a sale extend beyond the financial metrics. Moonton Technology’s games have been a key player in the mobile gaming market, and the transition of ownership could influence future developments within the franchise.

In summary, as negotiations continue, the gaming industry is watching closely. If finalized, this sale would not only reshape ByteDance’s gaming strategy but also strengthen Savvy Games Group’s position in the global gaming landscape.