Highlights
- ByteDance is reportedly negotiating to sell Moonton Games to the Saudi-backed Savvy Games Group.
- This sale would mark ByteDance's retreat from gaming to focus on AI and e-commerce.
- The deal supports Savvy's aggressive expansion under Saudi Arabia's "Vision 2030" initiative.
TikTok parent company ByteDance is reportedly back at the negotiating table to sell its gaming subsidiary, Moonton Games. According to a new report from Bloomberg, the tech giant is currently in early discussions to sell the studio to the Saudi Arabia-backed Savvy Games Group. While sources indicate that talks are ongoing and a final agreement is not yet guaranteed, this potential transaction signals a significant pivot for ByteDance as it seeks to retreat from the video game industry to refocus resources on core businesses like e-commerce and artificial intelligence.
This development represents a revival of ByteDance’s plans to offload the Shanghai-based studio, a move the company initially shelved in late 2023. Moonton was acquired by the TikTok company in 2021 for approximately $4 billion with the specific intent of challenging Tencent’s dominance in the global gaming market.
However, reports suggest the studio has not met performance expectations since the acquisition. Having already conducted mass layoffs at its Nuverse publishing arm and restructured its gaming division, selling Moonton would represent ByteDance's largest retreat from the industry. It would also allow the company to streamline operations and recover capital.
Savvy’s Strategic Expansion and Moonton’s Market Power
For Savvy Games Group, acquiring Moonton would align perfectly with its aggressive global investment strategy. Wholly owned by Saudi Arabia’s Public Investment Fund (PIF), Savvy acts as a key vehicle for the Kingdom’s "Vision 2030" initiative, which aims to diversify the economy beyond oil.
The group has already made headlines with massive investments, including the $4.9 billion acquisition of Monopoly GO! developer Scopely, the purchase of the ESL FACEIT Group, and ownership of Japanese fighting game publisher SNK Corporation.
The PIF is also reportedly part of an investor consortium looking to take Electronic Arts private in a deal valued at $55 billion, though that transaction still faces regulatory hurdles.
Google Play
Despite ByteDance’s desire to sell, Moonton remains a heavy hitter in the mobile market. Its flagship title, Mobile Legends: Bang Bang, generated over $502.5 million in revenue by 2020 and remains a dominant force in Southeast Asia.
However, this deal comes as Saudi Arabia’s Public Investment Fund faces an investment slowdown. Recent reports indicate that the Kingdom is recalibrating its spending strategy as cash reserves have dipped, shifting focus toward funding domestic investments.
The game recently accounted for over 50 million hours watched at the Esports World Cup (EWC)—an event also funded by the PIF—highlighting its massive viewer engagement. However, the studio has faced difficulties in replicating this success with new titles, a struggle that likely contributed to ByteDance’s decision to exit the hardware and development space entirely.
