The TikTok parent is selling Mobile Legends studio to Saudi-backed Savvy Games. It's not just a deal—it's a capital flow worth watching closely.
ByteDance Sells Mobile Legends Studio for $6B to Saudis
ByteDance is in talks to sell Shanghai Moonton Technology, the developer behind Mobile Legends: Bang Bang, to Saudi Arabia's Savvy Games Group. The price tag being discussed sits between $6 billion and $7 billion, according to people familiar with the negotiations. It's a gaming transaction on paper, but the underlying dynamics are worth paying attention to.
Mobile Legends isn't a niche title. It's one of the most popular mobile games globally, particularly strong in Southeast Asia, with hundreds of millions of players and a legitimate esports ecosystem. For ByteDance to even consider divesting an asset of that caliber suggests this isn't about cleaning up minor holdings—it's a strategic retreat from a profitable, high-engagement vertical.
On the buyer side, you have Savvy Games Group, which is backed by Saudi Arabia's Public Investment Fund. Savvy has been on an acquisition tear, pouring billions into gaming studios, esports infrastructure, and digital entertainment. This fits squarely into the broader Vision 2030 strategy: diversify the economy, reduce oil dependence, and dominate emerging sectors like gaming and interactive media. They're not buying for short-term returns. They're buying positioning.
What makes this interesting is the timing. ByteDance is under regulatory pressure in multiple markets, facing scrutiny over data handling, content moderation, and national security concerns. Offloading a $6 billion gaming studio could be about raising capital, reducing complexity, or both. But when a company with ByteDance's resources decides to sell rather than hold, it's usually because holding carries costs that aren't visible on a balance sheet.
Meanwhile, sovereign wealth funds like Saudi Arabia's PIF are moving aggressively into tech and digital assets at a time when Western venture capital has pulled back and valuations have compressed. They're buying when others are hesitant, which is classic contrarian positioning—but also raises the question of what they see that the market doesn't, or what leverage they're willing to deploy that private buyers can't match.
The deal hasn't closed yet, and valuations at this level can fall apart over structuring, regulatory approvals, or cold feet. But whether or not it goes through, the direction of travel is clear: Chinese tech is divesting, and Gulf sovereign wealth is absorbing. That's not a one-off. That's a pattern.