ByteDance Moonton Sale to Saudi Arabia: Exclusive Details on the $7 Billion Talks

Image Credit: Tech Raptor

TL;DR:

• Valuation: $6-7B

  
  

• Buyer: Savvy Games (Saudi PIF-backed)

  
  

• Why?: ByteDance exits gaming amid TikTok focus

  
  

• Impact: Boosts Saudi's esports empire (Vision 2030)

The gaming world is buzzing with reports of a massive deal: ByteDance, the parent company of TikTok, is in advanced negotiations to sell its gaming studio Moonton to Saudi Arabia's Savvy Games Group.

Valued between $6 billion and $7 billion, this potential acquisition could reshape the mobile gaming landscape and mark a significant retreat for ByteDance from the video game sector. First broken by Reuters, the talks highlight Saudi Arabia's aggressive push into esports and entertainment. If finalized, the transaction could close by the end of Q1 2026, delivering a hefty profit for ByteDance after its $4 billion purchase of Moonton in 2021.

This move comes amid ByteDance's broader strategy to streamline operations, focusing on core apps like TikTok while divesting from underperforming gaming assets. For Savvy Games, backed by Saudi Arabia's Public Investment Fund (PIF), it's another step in building a global gaming empire. Let's dive into the details.

What We Know About the ByteDance Moonton Sale to Saudi Arabia?

Sources close to the matter indicate that ByteDance and Savvy Games have reached an initial agreement on key terms, paving the way for a swift closure. The deal revives discussions that were paused last year, now accelerated by ByteDance's valuation surge and Savvy's appetite for high-profile acquisitions.

Deal Details and Valuation in the ByteDance Moonton Sale to Saudi Arabia

The proposed sale price ranges from $6 billion to $7 billion, a premium over Moonton's 2021 valuation. Moonton, based in Shanghai, is best known for Mobile Legends: Bang Bang, a blockbuster mobile MOBA game with millions of players worldwide, particularly in Southeast Asia.

The studio's success has driven consistent revenue, making it an attractive target for Savvy, which aims to expand its portfolio in mobile and esports.

According to reports, the agreement could be announced as early as March 2026, with both parties aligning on strategic fit. This would rank among the top gaming mergers, surpassing many recent deals in scale.

Background on Moonton and ByteDance's Gaming Retreat

ByteDance entered the gaming fray aggressively in the early 2020s, acquiring Moonton to tap into the booming mobile market. However, challenges like regulatory scrutiny in China and shifting priorities led to a pivot. In 2024, ByteDance began trimming its gaming division, selling off assets and laying off staff to refocus on AI and social media.

Moonton, founded in 2014, has been a standout with Mobile Legends generating billions in revenue through in-app purchases and esports events. The sale aligns with ByteDance's cost-cutting measures, as confirmed by industry analysts.

Saudi Arabia's Expanding Gaming Empire

Savvy Games Group, established in 2022 with a $38 billion fund from PIF, is on a buying spree. Recent investments include stakes in Nintendo, EA, and Activision Blizzard, positioning Saudi Arabia as a gaming powerhouse. Acquiring Moonton would bolster its mobile presence, complementing deals like the rumored EA buyout.

This strategy supports Saudi Vision 2030, diversifying from oil through entertainment.

As Kotaku notes, it's part of a broader consolidation wave in gaming.

Implications for the Gaming Industry

If the ByteDance Moonton sale to Saudi Arabia materializes, it could spark more mergers amid economic pressures. Mobile gaming might see increased Middle Eastern influence, potentially boosting esports in the region. For players, it raises questions about game development direction under new ownership.

Stay tuned for updates, deals of this magnitude often evolve quickly. For more insights, check GamesIndustry.biz and Game Developer.

Sources: Reuters, GamesIndustry.biz, Kotaku, Game Developer, Yahoo Finance.