(Yicai) March 23 -- Chinese internet giant ByteDance is in the process of selling its game developer Moonton Technology, the studio behind Mobile Legends: Bang Bang, to Saudi Arabia’s Savvy Games Group, Yicai learned from multiple sources.

The acquisition is still underway, although neither ByteDance nor Moonton has publicly responded. An internal Moonton letter dated March 20 that circulated on social media said Savvy Games plans to acquire the company and that the transaction is expected to be completed soon. After the deal closes, Moonton will become a wholly owned subsidiary of Savvy.

Founded in 2014, Moonton initially focused on overseas markets. Its flagship multiplayer online battle arena mobile game, Mobile Legends: Bang Bang, quickly gained popularity in Southeast Asia after its launch, particularly in Indonesia. The title remains among the top revenue generators in overseas markets.

According to the leaked internal letter, Moonton’s management structure will remain unchanged after the transaction, and it will continue to operate as a Shanghai-based company. Zhang Yunfan, head of ByteDance’s gaming division, will continue to serve as Moonton’s chief executive officer.

The internal letter did not disclose the transaction value, but social media reports suggest the acquisition price exceeds USD6 billion. ByteDance acquired Moonton in 2021 for more than USD4 billion, according to foreign media reports. If the reported price is accurate, the investment would represent an appreciation of about 50 percent over five years.

Game industry analyst Zhang Shule told Yicai that the deal represents a win-win outcome. For ByteDance, it allows the company to divest a profitable business that had limited relevance to its broader strategy while achieving a better-than-expected return. For the buyer, Saudi Arabia would gain ownership of a leading esports title, strengthening its ambition to develop esports and related industries as a second economic pillar beyond oil.

The acquisition would also provide a foundation for expanding the esports industry chain and help reduce potential risks associated with major esports titles being controlled by large established companies, Zhang added.

Editor: Emmi Laine