ByteDance’s potential $6–$7 billion sale of Moonton would mark a strategic exit from large-scale gaming as Saudi Arabia deepens its push into global interactive entertainment.

ByteDance is in advanced discussions to sell Shanghai Moonton Technology, the studio behind the global mobile hit Mobile Legends: Bang Bang, to Saudi Arabia’s Savvy Games Group in a deal valued between $6 billion and $7 billion, according to two sources with knowledge of the matter who spoke to Reuters.

One source said the transaction could be finalized as soon as this quarter. The companies have reached an initial agreement on broad terms, the second source said

A Strategic Retreat From Gaming

A sale would represent a decisive shift for ByteDance, which in recent years sought to diversify beyond its core short-video business into gaming.

ByteDance acquired Moonton in 2021 through its gaming subsidiary Nuverse in a deal that valued the studio at about $4 billion. The purchase formed part of an effort to build an international gaming portfolio capable of challenging established players in mobile and online gaming.

In 2023, however, ByteDance announced it would restructure its gaming business following a strategic review, signaling a recalibration of priorities. The company has since reduced investment in several game development projects and scaled back its broader gaming ambitions.

A sale at up to $7 billion would crystallize a substantial gain on its original acquisition, reflecting the sustained commercial performance of Mobile Legends and the premium attached to proven global IP.

The move would also allow ByteDance to reallocate capital and management focus toward its core growth drivers — including TikTok, advertising technology, and artificial intelligence initiatives — sectors that align more closely with its long-term strategy.

Founded in 2014, Moonton has grown into a major player in mobile multiplayer online battle arena (MOBA) gaming. The company says it employs more than 2,000 people and operates across Southeast Asia, Latin America, and China.

Its flagship title, Mobile Legends: Bang Bang, has recorded more than 1.5 billion installations and over 110 million monthly active users, according to the company’s website. The game consistently ranks among the top 10 most played titles in more than 80 countries.

The title’s strength lies not only in downloads but in its live-service model, which generates recurring revenue through in-game purchases, seasonal content updates, and cosmetic items. Its deep integration into Southeast Asia’s e-sports ecosystem further enhances monetization through sponsorships, media rights, and branded tournaments.

For an acquirer, the combination of scale, brand recognition, and recurring revenue streams makes Moonton an attractive strategic asset in a consolidating market.

Saudi Arabia’s Expanding Gaming Strategy

For Savvy Games Group, the acquisition would reinforce Saudi Arabia’s ambition to establish itself as a global hub for gaming and e-sports.

Savvy is owned by the Public Investment Fund and has pursued rapid expansion through acquisitions and investments. In 2023, it acquired Scopely for $4.9 billion. Earlier this year, Scopely acquired the games division of Niantic for $3.5 billion.

Adding Moonton would expand Savvy’s footprint in Asia and strengthen its position in the highly competitive mobile gaming segment. Southeast Asia represents one of the fastest-growing gaming markets globally, driven by smartphone penetration, youthful demographics, and increasing digital payment adoption.

The acquisition would also support Saudi Arabia’s broader Vision 2030 economic diversification program, which aims to reduce reliance on oil revenues by developing entertainment, media, and technology industries.

The proposed deal is seen as part of the ongoing consolidation in the global video game industry. Rising development costs, higher marketing expenditures, and intense competition for user attention have increased the strategic value of established franchises with durable engagement metrics.

In recent years, large publishers and investment groups have sought to secure high-performing IP that can generate predictable cash flows and cross-platform expansion opportunities. Mobile gaming, in particular, has proven resilient due to its lower hardware barriers and global reach.

A valuation of $6 billion to $7 billion implies confidence in Moonton’s ability to sustain user growth, expand monetization, and maintain relevance in an increasingly crowded market. It also suggests that premium mobile IP continues to command significant multiples, especially when paired with strong regional e-sports ecosystems.

The divestment discussions come amid strong financial performance at ByteDance. Reuters has reported that the company’s revenues in the first and second quarters of 2025 exceeded those of Meta Platforms, making ByteDance the world’s largest social media company by sales during those periods.

In the third quarter, ByteDance launched an employee share buyback program valuing the company at more than $330 billion, up 5.5% from its previous buyback valuation in March, according to sources.

Against that backdrop, the Moonton sale appears less about liquidity and more about strategic discipline. By exiting a capital-intensive and competitive gaming segment, ByteDance could sharpen its focus on areas where it holds structural advantages — algorithmic content distribution, advertising monetization, and AI-driven personalization.

If completed, the transaction is expected to mark two broader shifts in the global technology industry.

First, Chinese consumer internet giants are increasingly concentrating on core competencies rather than pursuing diversified expansion at any cost. Second, Gulf sovereign wealth funds are accelerating their acquisition of global entertainment and digital assets, aiming to build long-term influence in high-growth sectors.

However, the sale would close a chapter in ByteDance’s efforts to build a gaming empire, while it would represent another step by Savvy Games Group in assembling a globally competitive portfolio anchored by proven intellectual property.

The Japanese government relies on new energy technologies and advanced materials science to secure its industrial future and address what it sees as national security vulnerabilities.

A Japanese research team has successfully collected seabed samples containing rare earth elements at a depth of 6000 meters in the Pacific Ocean, near Minamitorishima Island. And if this initiative comes to fruition, we could see another big player in the rare earths sector, with potential repercussions on the USDJPY chart.

The dispute over rare earths has become far more serious amid escalating geopolitical tensions, as indicated by some charts, such as REMX, which has been rising sharply since mid-2025.

The Japan Agency for Marine-Earth Science and Technology (JAMSTEC) team used the deep-sea scientific drill ship Chikyu to achieve their first successful continuous lift operation, which involved retrieving material from extreme ocean depths.

The samples will undergo analysis to determine their total volume and mineral content, which will be conducted before the 2027 full-scale testing phase. Many advanced industries, such as electric vehicles, renewable energy, robotics, computing, and defense technology, whose companies are frequently featured on the premarket movers list, require rare earths, including dysprosium, neodymium, terbium, and gadolinium.

Rare earth elements are not as rare as they seem. Their extraction is just economically draining, because those elements exist in nature at very low concentrations. For the moment, China largely dominates global production, with more than 90% of refined rare earths worldwide.

Japanese industries (like those in many other countries) have been highly dependent on Chinese suppliers. In 2024, more than 60% of Japan’s imported rare hearts were from China. This is a disadvantage, especially in tense moments.

China imposed restrictions on rare-earth material exports to Japanese businesses from late 2025 to early 2026 as part of a diplomatic dispute, following Tokyo’s statements on regional security matters. The new controls created supply chain disruptions, impacting TDK and other major manufacturers, and TDK indeed reported difficulties obtaining materials after export restrictions took effect.

In February 2026, China granted Japan a small number of rare-earth export permits, despite strict export controls. Japan’s deep-sea mining effort — if successfully commercialized — could substantially reduce this dependency, and erode one of China’s most significant geopolitical levers.

Japan can achieve greater economic self-protection and international market strength by developing its own domestic mineral supply chain. The United States and other allies could easily form international partnerships to support Japan’s efforts to diversify its supply sources in line with the country’s broader strategic plan.

 Toward a new Industrial Paradigm?

With the deep-sea rare-earth mining project (and the space-based solar power initiative), Japan demonstrates its determination toward technological independence — securing diverse resource security.

The success of these frontier technologies could weaken China’s longstanding dominance of critical rare earths and make Japan a new leader in sustainable energy innovation. But from what we know so far, the path to commercial viability on deep-sea extraction requires long-term investments and key international partnerships.

Geopolitical uncertainty is likely the foundation for those strategic decisions, as Japan bases its supply chain and energy system renovations on cutting-edge technological developments. This might be a way to boost its future economic performance and its positions in international markets.