ByteDance is in talks to sell its video game unit Moonton

ByteDance is in advanced talks to sell Shanghai Moonton Technology, the studio behind the popular mobile game Mobile Legends: Bang Bang, to Saudi Arabia’s Savvy Games Group in a deal valued at between $6 billion and $7 billion, according to sources.

The deal could close as early as this quarter, said one of the two sources with knowledge of the matter. Two companies have reached an initial agreement on the general terms of the deal and second source said.

The sources declined to be identified as they were not authorized to speak to the media. ByteDance, Moonton, and Savvy Games did not immediately respond to requests for comment from Reuters.

The deal would mark a significant retreat by ByteDance from the online gaming business. The social media group said in 2023 that it had decided to restructure its video game business following a review.

ByteDance bought Moonton in 2021 through its gaming unit Nuverse, in a deal that valued the studio at around $4 billion, Reuters reported at the time, as the owner of TikTok sought to build an international video game business to compete with larger rivals.

Founded in 2014, Moonton describes itself as a global video game company focused on game development, publishing, and e-sports, according to its website.