ByteDance reportedly to sell Moonton (MLBB)!

ByteDance is reportedly looking for potential buyers on its gaming unit Moonton Technology, the makers of Mobile Legends.

File photo: Mobile Legends: Bang Bang

ByteDance is reportedly selling Moonton!

To recall, ByteDance is the company behind the massive social media known as TikTok. They acquired Moonton back in 2021 for USD 4 billion (PHP 192B in 2021) and are now selling it for USD 5 billion (around PHP 276.7 billion).

ByteDance has hired Goldman Sachs a financial advisor that will aid the company in finding and calling potential buyers.

Based on two independent sources revealed to Chinese media outlet Xuebao that Savvy Games Group (SGG), a subsidiary of Saudi sovereign wealth fund PIF, is one of the possible buyers in this arrangement. It is reported that right now the two parties have engaged in at least one round of talks, however, they haven't reached an agreement on the transaction price.

Apparently, Bytedance intends to get a higher price than the USD 4 billion they paid back when they acquired the game publisher two years ago. However, SGG thinks that ByteDance's asking price could be too high considering Moonton's current performance.

One of the reasons why Bytedance wants to sell Moonton is due to its unremarkable performance apart from seeing other setbacks in its gaming expansion. Moreover, the company will be focusing on hardware and will cut game and software-related jobs such as the virtual reality unit Pico.

Unfortunately, both Moonton and ByteDance have not commented on the matter yet.

We will update you once we hear more of it.

Source: Reuters