ANN/THE STRAITS TIMES – ByteDance is considering selling gaming studio Shanghai Moonton Technology, people familiar with the matter said, as the TikTok owner looks to streamline its operations and focus on core businesses.
The start-up is working with an adviser to gauge interest from potential buyers for the studio behind popular battle arena title Mobile Legends: Bang Bang, the sources said.
ByteDance acquired Moonton in 2021 at a valuation of about USD4 billion, according to the sources.
Discussions are at an early stage and the deal size target could not be immediately learnt, said the sources, who asked not to be identified as the information is private. ByteDance may also decide against a sale, they added. Representatives for ByteDance and Moonton did not respond to requests for comment.
ByteDance, founded more than a decade ago by Zhang Yiming and Liang Rubo, grew into an Internet leader worth more than USD200 billion thanks to the virality of short-video platforms TikTok and Douyin.
The company has bought game studios and exclusive distribution rights, hoping to jump-start the games business much as it disrupted social media and rivalled players such as Tencent and NetEase.
ByteDance has cut some of its game creation and publishing teams, as it shifts focus towards the new growth driver of e-commerce. A sale of Moonton, if struck, would mark its biggest retreat in the attempt to conquer video gaming.
Founded in 2014 by a pair of Tencent veterans, Moonton is best known for Mobile Legends: Bang Bang, which has struck a chord with fans in Southeast Asia. It was approved for release in China in April. Yet the ageing title has struggled to make it in a bigger e-sports arena dominated by Tencent and its subsidiary Riot Games.
ByteDance has left Moonton to operate in near-autonomy since the 2021 acquisition.
Moonton has more than 1,600 employees globally and operates offices in Indonesia, Malaysia, Singapore, Hong Kong and China, its website shows.
