ByteDance, the parent company of TikTok, has confirmed that it is in the process of selling its video game operations. This news was reported by the South China Morning Post (SCMP), which indicated that ByteDance is in discussions with several potential buyers, including Tencent, the world’s largest gaming company. However, no final deal has been agreed upon yet.
This development follows reports from November suggesting ByteDance was considering selling its gaming arm, Nuverse, as well as Mobile Legends: Bang Bang developer Moonton Technology. According to the SCMP, citing local media source LatePost, ByteDance is lowering the valuation of its gaming studios to facilitate a sale.
ByteDance has reportedly invested over 100 million yuan ($14 million) in developing various game titles. Despite this, the company has been scaling back its gaming operations, having conducted two rounds of layoffs in 2022.
ByteDance’s gaming division has produced or published titles such as Marvel Snap, One Piece: The Voyage, and Crystal of Atlan. Second Dinner, the developer of Marvel Snap, has stated that the game will not be impacted by ByteDance’s restructuring.
SCMP reports that ByteDance invested about 30 billion yuan ($4.2 billion) in the gaming sector from 2019 to 2022 through acquisitions and investments. However, the company has struggled to see a significant return on these investments.
