China’s ByteDance Ltd is in advanced negotiations to sell its gaming subsidiary, Shanghai Moonton Technology, in a deal that sources familiar with the matter say could be worth between $6 billion and $7 billion.
Moonton, the Shanghai-based studio behind the massively popular mobile game Mobile Legends: Bang Bang, was acquired by ByteDance in 2021 for about $4 billion. The potential sale marks a significant shift in ByteDance’s strategy as the company downsizes its gaming operations following a broader restructuring announced in 2023.
The prospective buyer is Savvy Games Group, a Saudi Arabia–based gaming and esports company backed by the Public Investment Fund. Savvy Games has been actively expanding through acquisitions, including the purchase of U.S. mobile games firm Scopely in 2023.
According to the sources, who declined to be named because discussions are private, the two sides have reached an initial agreement on broad terms, and the transaction could be concluded as early as this quarter. ByteDance, Moonton and Savvy Games Group did not immediately respond to requests for comment.
Moonton, established in 2014, is a global developer and publisher with more than 2,000 employees and offices across Asia and Latin America. Mobile Legends: Bang Bang has been downloaded more than 1.5 billion times and reports over 110 million monthly active users, making it one of the world’s most played mobile titles.
Industry analysts say the sale would contribute to ongoing consolidation in the video game sector, where companies are seeking scale and intellectual property to compete in fast-growing markets. For ByteDance, the move reflects a retreat from online gaming after years of investment aimed at challenging established rivals.