ByteDance sells Moonton to Saudi Savvy Games for $6 billion in a major gaming acquisition

ByteDance has agreed to sell its gaming studio Moonton, to Savvy Games Group, a Saudi company backed by the Public Investment Fund, for more than $6 billion. The move comes as ByteDance focuses more on its artificial intelligence business. As reported by The South China Morning Post, Moonton is the developer behind Mobile Legends: Bang Bang, a mobile game that has reportedly surpassed 1.5 billion downloads since its release in 2016. The studio will continue to operate in Shanghai, and its CEO, Zhang Yunfan, and the management team are expected to remain. The deal is expected to be completed in the coming months, according to a Savvy representative.Moonton is a leading mobile game developer, especially in Southeast Asia. Mobile Legends: Bang Bang has managed to sustain a considerable number of players, with over 110 million monthly active users. It still ranks well in the app charts in Southeast Asian countries such as Thailand. ByteDance acquired Moonton in 2021 for $4 billion.Savvy Games Group is a part of the larger Saudi Arabian strategy to invest in the international gaming and digital entertainment industry. The Public Investment Fund has made a number of acquisitions in the industry in recent years. Savvy has also stated that it considers the Chinese market to be important and considers the game development talent in the country to be among the best in the world. Savvy intends to keep the current management and operational structure in Shanghai.The sale is part of ByteDance’s gradual exit from the gaming sector. In 2024, ByteDance sold two gaming units to Tencent and another to a Tencent-backed subsidiary, China Ruyi Holdings. Analysts note that the company has been reducing its gaming exposure while preparing to expand its artificial intelligence initiatives. ByteDance has reportedly been generating cash flow from AI development, even as its overall profits have seen fluctuations.The acquisition by Savvy does not appear to involve immediate changes to Mobile Legends: Bang Bang. The game is expected to continue operating as usual under its current leadership. The studio reportedly plans to provide incentives to employees, including accelerated vesting of long-term benefits, once the transaction is complete.