ByteDance Sells Moonton for Rp96 Trillion: Will MLBB's Fate Change?

This move is part of ByteDance’s broader strategy to exit the gaming business and redirect its focus towards developing artificial intelligence (AI) technology. According to a report from the Engadget website, the sale of Moonton marks a change in ByteDance’s business direction in recent years. After aggressively entering the gaming industry, the TikTok parent company is now streamlining its gaming portfolio. Moonton was previously acquired by ByteDance in 2021 for around US$4 billion. However, ByteDance’s gaming unit has been unable to compete with major players like Tencent. As part of the restructuring, ByteDance has also shut down its Nuverse gaming line and reduced investments in the sector, while strengthening AI development such as chatbots and generative models. On the other hand, this acquisition is a strategic step for Savvy Games Group, a company under Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF). Savvy Games CEO Brian Ward stated that acquiring Moonton will strengthen the company’s expansion in the mobile gaming sector and broaden its global esports reach. Moonton is known as the developer of popular multiplayer mobile games like Mobile Legends: Bang Bang, which has been downloaded more than 1.5 billion times and has a strong player base in Southeast Asia, including Indonesia. In an internal memo cited from a Bloomberg report, Moonton CEO Zhang Yunfan stated that after the acquisition is completed, the company’s management structure will be maintained. Additionally, Moonton employees will receive incentive programmes as part of this ownership transition. The transaction itself is said to be finalised soon. Savvy Games’ acquisition of Moonton also reflects the major consolidation trend in the global gaming industry. In recent years, technology and investment companies have become increasingly aggressive in acquiring game studios to strengthen their ecosystems. Savvy has previously acquired Scopely (developer of Monopoly GO) and then bought Niantic (developer of Pokémon Go) for USD3.5 billion, as well as investing in various global gaming companies. On the other hand, the gaming industry also faces pressures, including large waves of layoffs affecting tens of thousands of workers in recent years. For the Southeast Asian market, including Indonesia, this acquisition has the potential to bring significant impacts. The strong popularity of Mobile Legends in the region makes Moonton a strategic asset.