ByteDance in Talks to Sell Moonton to Saudi Arabia’s Savvy Games Group in Major Gaming Exit
- Why is ByteDance Selling Moonton?
- How Does This Fit Into ByteDance’s Strategy?
- What’s Driving Saudi Arabia’s Gaming Push?
- ByteDance’s Valuation Leap: What Changed?
- How Are China’s Tech Restrictions Affecting ByteDance?
- Frequently Asked Questions
ByteDance, the Chinese tech giant behind TikTok, is reportedly negotiating the sale of its gaming studio Shanghai Moonton Technology Co. to Saudi Arabia’s Savvy Games Group. This potential deal marks ByteDance’s strategic retreat from the gaming industry as it shifts focus toward e-commerce. Moonton, acquired for $4 billion in 2021, is the developer of the wildly popular Mobile Legends: Bang Bang (MLBB), which recently dominated viewership at the Esports World Cup. Meanwhile, ByteDance’s valuation has surged to $480 billion amid a competitive stock auction, placing it just behind OpenAI in market value. Here’s a DEEP dive into the implications of these developments.
Why is ByteDance Selling Moonton?
ByteDance’s potential sale of Moonton aligns with its broader pivot away from gaming. Two years ago, the company signaled its exit by halting most game development projects. Now, with Savvy Games Group—a subsidiary of Saudi Arabia’s sovereign wealth fund—emerging as the likely buyer, the deal could reshape the esports landscape. MLBB, Moonton’s flagship title, has become a global esports powerhouse, accounting for over 25% of viewership at the 2024 Esports World Cup with 50.32 million hours watched. The game’s success makes Moonton a lucrative asset, but ByteDance seems determined to double down on its e-commerce ambitions instead.
How Does This Fit Into ByteDance’s Strategy?
ByteDance has been streamlining its gaming division since 2023, cutting teams and scaling back operations. The company’s recent $480 billion valuation—up 45% from its September employee stock buyback price—reflects investor confidence in its core businesses: TikTok, Douyin, and e-commerce platforms like TikTok Shop. "Gaming was always a side hustle for ByteDance," notes a BTCC analyst. "Their real growth engine is digital advertising and live-stream commerce, which generated $120 billion in revenue last year." Selling Moonton WOULD free up resources to compete with Alibaba and Pinduoduo in China’s cutthroat e-commerce market.
What’s Driving Saudi Arabia’s Gaming Push?
Savvy Games Group, backed by the $700 billion Public Investment Fund (PIF), has been aggressively acquiring gaming assets as part of Saudi Vision 2030’s diversification plan. The kingdom already owns stakes in Nintendo (8.3%), Capcom (5.3%), and ESL Gaming. Acquiring Moonton would give Saudi Arabia control over MLBB—a game with 100 million monthly active users, particularly across Southeast Asia. "This isn’t just about ROI; it’s soft power," says industry veteran Riad Nassar. "Esports is how Saudi Arabia wants to engage with Gen Z globally."
ByteDance’s Valuation Leap: What Changed?
A recent stock auction saw ByteDance’s valuation spike to $480 billion after seven bidders—including Kathy Xu’s Capital Today—fiercely competed for shares originally priced at $360 billion. The 33% premium underscores ByteDance’s resilience despite U.S.-China tensions. For context:
| Company | Valuation (USD) |
|---|---|
| ByteDance | $480B |
| OpenAI | $500B |
| SpaceX | $400B |
| Meta | $1.49T |
Source: TradingView
How Are China’s Tech Restrictions Affecting ByteDance?
In a separate development, Chinese regulators barred ByteDance from using Nvidia’s AI chips in new data centers, mandating domestic alternatives like Huawei’s Ascend processors. This aligns with Beijing’s push for tech self-sufficiency amid U.S. export controls. ByteDance had stockpiled Nvidia chips in anticipation of shortages, but now faces operational hurdles. "Switching to local chips could slow their AI development by 12–18 months," estimates a semiconductor analyst at BTCC.
Frequently Asked Questions
Why is Moonton valuable?
Moonton’s MLBB is one of the world’s top mobile esports titles, with record-breaking viewership and a massive Southeast Asian user base.
How much did ByteDance pay for Moonton?
ByteDance acquired Moonton for $4 billion in 2021 during its short-lived gaming expansion phase.
What’s next for MLBB esports?
MLBB is confirmed to return to the Esports World Cup in 2026, likely under new ownership if the Savvy deal closes.
