TikTok-owner ByteDance in talks to sell gaming assets to Tencent
What's the story
ByteDance is in talks with several potential buyers, including Tencent, the world's biggest video game company, to sell its gaming assets. As TikTok's parent company shifts its focus to other core businesses, it is stepping back from the gaming industry. A representative from ByteDance confirmed to Reuters that discussions are underway, but no agreement has been reached so far.
Details
The potential deal involves popular Nuverse games
The potential deal between ByteDance and Tencent includes popular video games from ByteDance's Nuverse gaming unit, such as Crystal of Atland and Earth: Revival. In November, ByteDance revealed plans to revamp Nuverse and exit the gaming business to focus on other core businesses. The firm stopped working on unreleased games and planned to divest of titles already launched, people familiar with the matter told Reuters at the time.
Insights
ByteDance's relationship with Tencent
ByteDance has also been searching for buyers for its other gaming unit, Moonton, which it purchased in 2021. Interestingly, ByteDance's relationship with Tencent in gaming has improved after a period of fierce rivalry, with Tencent heavily relying on ByteDance's advertising network to promote its latest game DreamStar.