ByteDance Resumes Talks to Sell Moonton to Saudi Arabia’s Savvy Games Group
ByteDance Ltd. has reopened negotiations to sell its gaming subsidiary, Shanghai Moonton Technology, to Savvy Games Group, marking a renewed effort by the Chinese technology giant to divest its major gaming assets.
According to a Bloomberg report released on November 27, the Riyadh-based gaming powerhouse, fully owned by Saudi Arabia’s Public Investment Fund (PIF), has engaged with ByteDance regarding the potential acquisition. While discussions are currently underway, sources familiar with the matter cautioned that the talks remain fluid and a final transaction is not guaranteed.
This development signals a definitive pivot in ByteDance’s gaming strategy following a period of internal restructuring. The potential sale comes as Savvy Games Group continues an aggressive capital deployment strategy in 2025, seeking to expand its global footprint and leverage Moonton’s dominance in the Southeast Asian mobile esports market.
ByteDance originally acquired Moonton in 2021 for approximately US$4 billion, aiming to challenge established industry incumbents. However, following a shift in corporate priorities and a contraction of its gaming unit, Nuverse, the company is now seeking to monetize the asset after a previous attempt to sell the studio stalled in late 2023.
Reviving the Transaction
The current negotiations represent a second attempt by the two parties to reach an agreement. In late 2023, ByteDance sought to sell Moonton for a valuation reported to be at least US $5 billion. At that time, Savvy Games Group had conducted initial inquiries, but the talks failed to produce a consensus on the valuation.
Following the initial breakdown in talks, ByteDance underwent significant organizational changes. In May 2024, the company appointed Zhang Yunfan, the former president of Perfect World’s gaming business, to oversee both Moonton and Nuverse, bringing a period of stability to the division. Despite rumors in April 2025 suggesting ByteDance might package its gaming units for an independent IPO, company representatives denied such plans, leaving a trade sale as the primary exit route.
Industry reports indicate that the timing may now be more favorable for a deal. Sources cited by Chinese gaming media outlet Game New Knowledge suggest that Savvy is actively seeking entry points into the Asian market, while speculation regarding Savvy's capital utilization suggests the group is eager to finalize pending investments.
Savvy’s Global Ambitions
For Savvy Games Group, acquiring Moonton would secure a strategic foothold in the competitive mobile MOBA (Multiplayer Online Battle Arena) sector. The Saudi firm, established in 2021, has been a prolific investor under the mandate of the PIF.
The renewed talks with ByteDance follow a massive consolidation move earlier this year. In September 2025, an investment consortium led by the PIF and Affinity Partners reached an agreement to acquire Electronic Arts Inc. (EA) for approximately RMB 390 billion yuan (US$55 billion). That transaction, expected to close in early 2027, highlighted the scale of Saudi Arabia's commitment to the video game industry.
Savvy CEO Brian Ward stated in September that the company is looking to utilize Chinese talent to access global markets, aiming for a multi-billion dollar investment in the Asia region. Moonton fits this investment thesis, providing immediate access to established development capabilities and a live-service infrastructure.
Asset Performance and Valuation
Despite the corporate uncertainty surrounding its parent company, Moonton has maintained operational growth. Its flagship title, Mobile Legends: Bang Bang, remains a top-grossing application in key markets such as Indonesia, the Philippines, and the United States. Data from Sensor Tower indicates the game remained in the top 15 of the overseas revenue charts as of October.
Furthermore, Moonton has expanded its portfolio beyond its core title. The company has integrated assets from Hangzhou Xinguang Liumei following an acquisition this year and has launched new titles including Watcher of Realms and Acecraft. The studio is also developing new projects in the shooter and simulation genres.
While ByteDance’s asking price in 2023 reportedly ranged between US 2 billion and US 5 billion depending on the stage of negotiations, updated valuation figures for the current talks have not been disclosed. However, the studio’s sustained revenue performance and expanded pipeline suggest ByteDance retains a strong bargaining position as it looks to finalize its exit from game development.