ByteDance

ByteDance Is Looking To Sell Its Gaming Division

Nearly

ByteDance, the owner of TikTok, is looking to move away from the video games industry.

The news comes from the South China Morning Post. It has been revealed that the company is speaking to several potential buyers, including Tencent, but things are still in flux, and no agreement has been made yet. There are also plans to sell Moonton Technology.

Speaking to Reuter in November, ByteDance said after a restructuring at NuVerse, the studio behind Marvel Snap, it would look to pivot away from the video games industry and focus on other core markets. Reports indicate several projects were shelved, and those already in the market, like Crystal of Atland, would be divested.

The South China Morning Post also cites the LatePost, revealing ByteDance is currently looking to lower the valuations of its video game studios to make a deal by 100 million yuan or $18 million CAD.

Nearly 2,000 employees may be affected by layoffs as ByteDance looks to “make adjustments to focus on long-term strategic growth areas.” TikTok and its Chinese counterpart Douyin have been successful, but the video games industry has proven to be a challenge for the company.

“While the company made US$54 billion in the first half of 2023, less than 1 per cent of that came from their video games business,” said Lisa Hanson, chief executive of gaming industry consultancy Niko Partners.