ByteDance Nears $7 Billion Exit from Gaming with Potential Moonton Sale to Saudi Group

ByteDance, the Beijing-based parent of TikTok, is in the final stages of a strategic pivot that would see it divest its flagship gaming studio, Shanghai Moonton Technology, to Saudi Arabia's Savvy Games Group. According to Reuters sources familiar with the negotiations, the deal is valued between $6 billion and $7 billion.

If finalized, the transaction could be announced as early as this quarter, marking a definitive retreat for ByteDance from the core video game development sector—a field it once aggressively entered to challenge industry titans like Tencent.

Key Financials & Deal Dynamics

The acquisition represents a significant premium for the studio behind the global hit Mobile Legends: Bang Bang.

• Valuation Growth: ByteDance originally acquired Moonton in 2021 for approximately $4 billion. A sale at the $7 billion mark would represent a 75% increase in valuation in just five years.
• The Buyer: Savvy Games Group, backed by Saudi Arabia's Public Investment Fund (PIF), continues its aggressive, multi-billion-dollar expansion into Western and Asian gaming markets. This follows their 2023 acquisition of Scopely for $4.9 billion.
• Market Position: ByteDance's divestment comes despite its massive financial success elsewhere. In 2025, ByteDance's first- and second-quarter revenues surpassed Meta's, and the company's recent share buybacks have pushed its total valuation to over $330 billion.

A Shift in Corporate Strategy

The move signals a "restructuring" of ByteDance's gaming unit, Nuverse, which was launched with the ambition of creating a global gaming empire. Despite the massive reach of Mobile Legends—which boasts 1.5 billion installations and 110 million monthly active users—ByteDance has opted to refocus on its core social media and advertising engines.

Why This Matters

For the broader industry, this deal is a centerpiece in the ongoing consolidation of Intellectual Property (IP). Major players are currently racing for scale and distribution channels in a fragmented global market. For Saudi Arabia, the acquisition of Moonton provides a massive foothold in the Southeast Asian esports market, where Mobile Legends remains a dominant cultural force.

"The Moonton sale would add to the ongoing consolidation in the video game industry, as a number of major players race for IP dominance and scale in global markets."

Impact at a Glance

ByteDance, Moonton, and Savvy Games Group have not yet issued formal comments regarding the transaction.

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