ByteDance Moonton: Saudi Arabia’s Latest $7B Power Move in Gaming

In a massive shake-up for the mobile esports world, TikTok parent company ByteDance is reportedly in the final stages of selling its gaming subsidiary, Shanghai Moonton Technology, to Saudi Arabia’s Savvy Games Group, as reported by Reuters. Sources familiar with the negotiations indicate that the two tech giants have already reached a preliminary agreement on key terms, with the deal valued between $6 billion and $7 billion. If the talks proceed as planned, the transaction could be finalized as early as the current quarter, marking one of the largest gaming acquisitions of the year. 

This potential sale represents a significant strategic pivot for ByteDance, which originally acquired Moonton in 2021 for approximately $4 billion to challenge Tencent’s global dominance. However, the Beijing-based giant is now retreating from the video game sector following a corporate restructuring in late 2023 that deprioritized its gaming arm, Nuverse. Instead, ByteDance is refocusing resources on its core, high-growth pillars: short-form video, e-commerce, and generative AI.

The shift comes at a time of immense financial strength for the company; reports show ByteDance’s first and second-quarter 2025 revenues topped those of Meta, effectively making it the world’s number one social media company by sales. Furthermore, a recent employee share buyback placed the company's valuation at over $330 billion.

For the Saudi-backed Savvy Games Group, this acquisition is a major leap toward its goal of transforming the Kingdom into a global gaming hub by 2030. Backed by the Public Investment Fund (PIF), Savvy has been on an aggressive shopping spree, previously acquiring mobile developer Scopely for $4.9 billion in 2023. 

ByteDance Moonton Deal Signals Focus on AI and Social Growth

Acquiring Moonton would hand Savvy immediate control over Mobile Legends: Bang Bang, a cultural phenomenon in mobile esports. The studio employs over 2,000 people across offices in China, Indonesia, Malaysia, Singapore, the Philippines, and Latin America.

The price tag reflects Moonton's staggering reach and active community. Mobile Legends: Bang Bang currently boasts over 1.5 billion total game installations worldwide and serves more than 110 million monthly active users. It remains a top-grossing title, ranking among the top 10 most-played games in over 80 countries. If the deal closes within the reported $6 billion to $7 billion range, ByteDance will have effectively flipped the studio for a huge profit.

While key terms have been agreed upon, the deal is not yet officially signed and will likely require regulatory approvals in both China and Saudi Arabia. Industry watchers view this move as part of a broader wave of consolidation, where major players are racing to secure enduring intellectual properties and global scale amid shifting geopolitical tensions. Neither ByteDance, Moonton, nor Savvy Games Group has officially commented on the ongoing talks.