ByteDance’s Moonton Games, best known for the development of mobile game hit Mobile Legends: Bang Bang (MLBB), may soon become the property of Savvy Games, a conglomerate with its headquarters in Riyadh. Savvy Games is owned by Saudi Arabia’s Public Investment Fund (PIF).
According to a report by Nikkei Asia, the two parties have signed an agreement, and the deal will be finalized after regulatory approvals. ByteDance has been scaling down its game business to focus on AI.
ALSO READ: Ubisoft’s Red Storm Closure And Retrenchment Of 105 Sends Emotions Running Wild
Reacting to the deal via an internal memo to employees, Moonton CEO Zhang Yunfan reiterated that the transaction will be finalized in the near future. According to Yunfan, the change in ownership will not impact the studio’s management structure. The headquarters will remain in Shanghai, and Yunfan will continue to serve as the CEO.
“We believe that through this partnership with Savvy, Moonton will receive broader development opportunities and deliver an even better gaming experience to more players around the world,” Yunfan said in the internal memo, sighted by Nikkei Asia.
How Moonton became a ByteDance company
ByteDance’s foray into the video game industry started with a gaming business unit named Nurverse in 2019. By 2021, the company acquired Moonton for $4 billion. Since that acquisition, ByteDance has released several games, but none has achieved global stardom like MLBB.
ByteDance has been making changes to its gaming business since 2023, including the cancellation of unannounced projects and sweeping layoffs. The restructuring was inspired by the company’s interest in generative AI.
ALSO READ: A Complete Guide On Creating the Ultimate Gaming Man Cave — 10 Steps
“We are proud of Moonton’s impressive growth into a leading mobile gaming player in Southeast Asia,” said a ByteDance spokesperson in response to requests for comments.
“This transaction marks a natural next step in its journey, and we look forward to seeing Moonton continue to push creative boundaries and inspire gaming communities around the world.”
Savvy Games CEO Brian Ward also commented on the acquisition, saying, “This acquisition directly supports Savvy’s purpose to enable prosperity and connection through play for generations to come, and our mission to drive long-term growth and innovation in games and esports”.
“Once completed, it will further strengthen our leadership in mobile games, deepen our talent pool, expand our global footprint, and enhance our reach across esports.”
The deal deepens Savvy Games’ investment in the Asian games market. The Fund was created to diversify the country’s revenue from crude. It holds significant investments in several global video game studios.
How do you feel about the acquisition of Moonton by PIF’s acquisition of Moonton? Share your thoughts in the comment box below.
