ByteDance is allegedly considering selling Moonton Technology, the developer of Mobile Legends, to the Public Investment Fund's Savvy Games

ByteDance, the parent company of TikTok, is reportedly engaged in discussions to sell the Shanghai-based gaming developer, Moonton Technology Co, to Savvy Games Group. ByteDance had acquired the developer in 2021. Bloomberg has reported, citing sources familiar with the situation, that there are active negotiations although Saudi Arabia’s Public Investment Fund (PIF), which owns Savvy, is reportedly experiencing financial constraints for new deals after extensive investments in the gaming and esports industries.

Requests for comments from ByteDance and Savvy were declined, and Bloomberg's informants have cautioned that these discussions might not lead to a conclusive sale.

The PIF, Saudi Arabia's sovereign wealth fund, holds significant stakes in several major gaming entities including Nintendo, Capcom, Nexon, Take-Two Interactive, Activision Blizzard, and Koei Tecmo. However, the PIF has been embroiled in controversies related to alleged human rights issues in Saudi Arabia.

Additionally, the PIF is among the group of investors engaging in a potential leveraged buyout of Electronic Arts, in association with the investment firm Affinity Partners, established by Jared Kushner, former U.S. President Donald Trump’s son-in-law.

In response to the EA buyout, the Communications Workers of America (CWA) president recently reached out to the Federal Trade Commission (FTC) and the Committee on Foreign Investment in the U.S. (CFIUS) to urge a thorough examination of the transaction to safeguard workers, consumers, and the gaming industry's future.