ByteDance, the owner of the popular social media platform TikTok, is in talks to sell its gaming unit MOONTON Technology, which it acquired two years ago for $4 billion. ByteDance’s Moonton, based in Shanghai, is known for creating the popular mobile game Mobile Legends: Bang Bang.
No notable releases since Mobile Legends cited one of the reasons for ByteDance selling MOONTON Games
ByteDance’s interest in becoming a major player in the global video games market led to the acquisition of MOONTON in 2021. However, sources report that ByteDance is now considering selling the gaming unit to focus on its core business. Meetings have taken place with potential buyers, including at least one Saudi-based company, although discussions are still in the early stages, and a deal is not guaranteed.
MOONTON’s performance post-acquisition has not met expectations, with no notable releases since the success of Mobile Legends. This underwhelming performance is cited as a key reason behind ByteDance’s decision to explore a sale.
ByteDance’s entry into the gaming industry has faced challenges, including the disbanding of its game development unit 101 Studio last year and the recent restructuring of its virtual reality (VR) unit, Pico. The company aims to shift its focus to hardware, leading to job cuts in software and games-related divisions.
The timing of ByteDance’s acquisition of Moonton coincided with a Chinese government crackdown on the video games sector, causing a contraction in the industry for the first time last year. Moonton, which boasts over 1,600 employees globally and operates beyond mainland China in countries like Indonesia, Malaysia, Singapore, and Hong Kong, has not released a blockbuster game since joining ByteDance.
MOONTON brushes off rumors, confirms independent operations
Update, November 30, 2023: Following the recent rumors, MOONTON Games’ CEO Justin Yuan addressed these speculations internally, assuring the company’s independence and commitment to progress in the gaming industry. He also adds that amidst the external changes they are facing, the operational anatomy of the company hasn’t changed. This pretty much is a direct confirmation from the company on their sale rumors.
Meanwhile, what is currently true is that ByteDance has announced the restructuring of the Nuverse gaming brand, which is known for popular titles such as Marvel Snap, Earth: Revival, and One Piece: The Voyage. The reason behind this was ByteDance’s stance on staying away from the mobile gaming market. With this, works on unreleased games will be on hold, including the Bleach: Soul Resonance second closed beta, but it won’t possibly be affected like the other three.
What are your thoughts on the news that ByteDance is considering the sale of Moonton? Let us know your opinions in the comments below!
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