TikTok Owner ByteDance Explores Sale of Gaming Unit Moonton
Two years after acquiring Shanghai-based gaming studio Moonton Technology for $4 billion, TikTok owner ByteDance is considering divesting the unit, according to five sources familiar with the matter.
Moonton, the developer of the popular mobile game “Mobile Legends: Bang Bang,” was initially seen as ByteDance’s boldest move to establish itself as a major player in the global gaming industry, valued at $187 billion. However, the company’s foray into gaming has encountered challenges.
Despite Moonton’s initial success with “Mobile Legends: Bang Bang,” the studio has struggled to replicate its achievements with subsequent titles. This lack of consistent success, coupled with ByteDance’s strategic decision to focus on its core businesses, has led to the exploration of a potential sale.
ByteDance has reportedly met with potential buyers, including at least one Saudi-based firm, to discuss the sale of Moonton. However, sources emphasize that the negotiations are still in their early stages, and a deal is not yet guaranteed.
ByteDance’s gaming ambitions have faced other setbacks. Last year, the company disbanded its Shanghai-based game development unit 101 Studio. Additionally, this month, ByteDance announced plans to restructure its virtual reality (VR) unit Pico, shifting its focus to hardware and reducing software and games-related positions.
The Chinese government’s crackdown on the video game sector, which began shortly after ByteDance’s acquisition of Moonton, has also contributed to the company’s decision to consider selling its gaming unit. The crackdown resulted in a decline in the sector for the first time last year.
Despite these challenges, Moonton remains a significant player in the gaming industry. With over 1,600 employees worldwide and operations extending beyond mainland China to Indonesia, Malaysia, Singapore, and Hong Kong, the company possesses a strong foundation for potential buyers to build upon.
As ByteDance weighs its options, the future of Moonton remains uncertain. However, the company’s strong intellectual property portfolio, including the popular “Mobile Legends: Bang Bang,” makes it an attractive acquisition target for companies seeking to expand their presence in the gaming industry.
