ByteDance, the parent company of popular video-sharing app TikTok, is reportedly engaged in discussions with potential buyers regarding the sale of its gaming unit Moonton Technology.
ByteDance acquired the Shanghai-based gaming studio in 2021 for $4 billion, with the aim of establishing a foothold in the global video games market. However, Moonton’s performance has been lackluster since the acquisition, leading ByteDance to consider divesting the gaming unit.
According to an exclusive report by Reuters, ByteDance has allegedly held talks with at least one Saudi-based firm regarding the potential sale. However, the discussions are still in the early stages, and there is no guarantee of a deal being finalized. ByteDance’s decision to sell Moonton is part of its strategy to focus resources on its core business activities.
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Moonton, best known for its popular mobile game “Mobile Legends: Bang Bang,” has not been able to replicate its initial success with another hit game since being acquired by ByteDance. This, coupled with other setbacks in ByteDance’s gaming expansion, such as disbanding its game development unit 101 Studio and restructuring its virtual reality unit Pico, has contributed to the company’s desire to sell Moonton.
It is worth noting that ByteDance’s acquisition of Moonton coincided with a crackdown by the Chinese government on the video games sector, which resulted in a contraction of the industry in China. Moonton operates not only in mainland China but also in Indonesia, Malaysia, Singapore, and Hong Kong, with over 1,600 employees worldwide.
ByteDance has declined to comment on the matter, and it remains to be seen how the potential sale of Moonton will unfold.