ByteDance is said to be in "advanced talks" to sell Moonton Technology, the developer of Mobile Legends, to Savvy Games for more than $6 billion

Image credit: Moonton Technology

Sources indicate that ByteDance, the company behind TikTok, is in "advanced talks" to divest Mobile Legends creator Moonton Technology. The prospective buyer, Savvy Games Group, may acquire the developer for an estimated $6 billion to $7 billion.

As reported by Reuters, insiders suggest the transaction could be finalized by the current quarter's conclusion. The two companies are believed to have settled on the preliminary terms.

Savvy Games did not address requests for comments, nor did representatives from ByteDance and Moonton.

The potential sale aligns with reports from the previous November about ByteDance contemplating divesting the Shanghai-headquartered Moonton. The news of ByteDance considering this sale emerged in 2023, two years after they initially acquired the game developer in 2021.

Reuters commented that the completion of this sale would signify a significant shift for ByteDance away from online gaming ventures.

ByteDance has acknowledged engaging in dialogue regarding the possible sale of their gaming division in 2024, with Tencent highlighted as a potential acquirer.

The purchasing entity, Savvy Games Group, is governed by Saudi Arabia's Public Investment Fund (PIF), which holds interests in several gaming companies, including Nintendo, Capcom, Nexon, Take Two, Activision Blizzard, and Koei Tecmo.

PIF, along with other investors like Silver Lake and Affinity Partners, is in advanced stages of a $55 billion transaction to acquire full control of Electronic Arts (EA), intending to incorporate its existing stake within the company.