ByteDance Engages in Discussions to Divest Gaming Division

Subscribe to GI Daily for the latest updates delivered to your inbox. ByteDance, the parent company of TikTok, has acknowledged that it is presently negotiating the sale of its gaming operations. This confirmation is based on a report by the South China Morning Post, which states that the company is in discussions with multiple potential buyers, including Tencent, the world's largest gaming company, although an agreement has yet to be reached. Speculation about ByteDance's plans to sell its gaming subsidiary, Nuverse, has been circulating since November, shortly after the company announced its intention to sell Moonton Technology, the developer of Mobile Legends: Bang Bang. Citing a local media outlet, LatePost, the South China Morning Post also reported that ByteDance has reduced the valuation of its gaming studios to facilitate a sale. The company has invested over 100 million yuan ($14 million) in the development of various titles. ByteDance has been downsizing its gaming operations, having implemented two rounds of layoffs in 2022. Notable titles developed or published by ByteDance's gaming division include Marvel Snap, One Piece: The Voyage, and Crystal of Atlan. However, Second Dinner, the developer of Marvel Snap, has stated that it should not be affected by ByteDance's restructuring efforts. According to the South China Morning Post, between 2019 and 2022, ByteDance spent approximately 30 billion yuan ($4.2 billion) on acquisitions and investments in the gaming industry but has yet to generate a return on this investment.