- Saudi's Savvy Games Group has agreed to acquire ByteDance's gaming studio Moonton for more than $6 billion.
- The deal underscores ByteDance's determination to pivot toward AI as profit margins face pressure.
Saudi Arabia's Savvy Games Group has reached an agreement with ByteDance to acquire a 100% stake in Shanghai-based Moonton Technology for over $6 billion.
The move marks a significant strategic shift for ByteDance, reflecting its resolve to focus on artificial intelligence as its core strategic direction.
Zhang Yunfan, head of ByteDance's gaming business, announced the deal in an internal memo on Friday, stating that Moonton will become a wholly-owned subsidiary of Savvy.
Moonton's management structure will remain unchanged. It will continue to operate as a Shanghai-headquartered company, with Zhang staying on as Moonton's CEO.
The sale will free up substantial capital for ByteDance, whose overall profits began to decline in the fourth quarter of 2025 due to massive investments in AI and rising global chip prices.
The buyer, Savvy, is a gaming group backed by Saudi Arabia's Public Investment Fund (PIF). The acquisition will help Savvy rapidly penetrate Asia's emerging gaming market, further completing Saudi Arabia's strategic footprint in the global gaming industry.
Moonton is the largest developer and publisher of multiplayer online battle arena (MOBA) mobile games in Southeast Asia.
Its flagship title, Mobile Legends: Bang Bang (MLBB), has performed strongly since its launch in 2016. The game boasts a massive player base in Southeast Asia and has built a mature esports ecosystem.
Acquisition talks between the two parties began in the second half of 2025, with a consensus on core terms reached in early 2026, according to multiple media reports.
During the transition period, ByteDance is offering generous terms for employee placement, providing multiple incentive plans for Moonton staff based on their historical performance contributions, Zhang noted.
