ByteDance is negotiating to sell its gaming studio Moonton to Saudi Arabia's Savvy Games Group for $6-7 billion. The TikTok owner acquired the Mobile Legends: Bang Bang developer in 2021 for $4 billion.
A deal could close as soon as this quarter, according to Reuters sources. Both companies have reached initial agreement on broad terms.
Moonton's flagship game has surpassed 1.5 billion downloads worldwide. The mobile MOBA maintains over 110 million monthly active users and ranks among the top 10 most played games in more than 80 countries.
Savvy Games Group, owned by Saudi Arabia's Public Investment Fund, has been expanding through acquisitions. The company purchased mobile game developer Scopely for $4.9 billion in 2023. In March 2025, Scopely acquired Niantic's game division for $3.5 billion.
ByteDance's gaming retreat follows a 2023 strategic review that led to restructuring. The company previously attempted to sell Moonton in late 2023 but negotiations stalled over valuation differences.
The potential sale marks ByteDance's continued exit from gaming despite earlier ambitions. In 2021, the company sought to build an international games business to challenge larger rivals like Tencent.
Moonton employs more than 2,000 people across offices in Indonesia, Malaysia, Singapore, the Philippines, Latin America and China. The studio was founded in 2014 and focuses on game development, publishing and esports.
ByteDance's valuation has surged in recent quarters.
The company's first- and second-quarter 2025 revenues exceeded those of Facebook and Instagram owner Meta, making it the world's top social media company by sales. ByteDance recently finalized a TikTok US joint venture deal in January 2026.
In the third quarter of 2025, ByteDance launched an employee share buyback at a valuation exceeding $330 billion. This represented a 5.5% increase from the previous buyback in March.
The gaming industry continues consolidating as major players compete for intellectual property dominance. Savvy Games Group's acquisition strategy aligns with Saudi Arabia's broader investment in global entertainment assets.
Other major gaming companies like Sony are also making strategic moves with new game announcements and remakes.
