Exclusive-ByteDance in talks to sell gaming unit Moonton for more than $6 billion, sources say

Core Viewpoint - ByteDance is in advanced negotiations to sell Shanghai Moonton Technology, the developer of the mobile game Mobile Legends: Bang Bang, to Saudi Arabia's Savvy Games Group for a deal valued between $6 billion and $7 billion [1][2]. Company Summary - The potential deal could be finalized as soon as this quarter, with initial agreements on broad terms already reached [2]. - ByteDance's sale of Moonton represents a significant retreat from the online gaming sector, following a restructuring decision made in 2023 [3]. - ByteDance acquired Moonton in 2021 for approximately $4 billion, aiming to establish a competitive international gaming business [4]. - Moonton, founded in 2014, has over 2,000 employees and operates in multiple regions, including Southeast Asia and Latin America [5]. Industry Summary - The sale of Moonton is part of a broader trend of consolidation within the video game industry, as companies seek to enhance their intellectual property (IP) and expand their market presence [3]. - Savvy Games Group, backed by Saudi Arabia's Public Investment Fund, is actively pursuing growth through acquisitions, having recently acquired Scopely for $4.9 billion [6]. - ByteDance's valuation has significantly increased over the past year, coinciding with its strategic shift away from gaming [6][9].