ByteDance, the Chinese owner of TikTok, is reportedly moving towards finalizing a deal with Saudi Arabia's Savvy Gaming Group to sell its gaming subsidiary, Shanghai Moonton Technology. This sale is projected to be valued between $6 billion and $7 billion. Sources indicate that the negotiations are at an advanced stage, with the sale likely to be concluded in the current quarter of 2026. Initial agreements on the terms of the deal have been reached, although neither party has publicly commented on the negotiations as per multiple Reuters sources who preferred to remain anonymous.

Shanghai Moonton Technology, known for developing the popular mobile game 'Mobile Legends: Bang Bang,' is one of the key players in the gaming industry. The potential acquisition underscores a significant trend in the video gaming sector, where companies are vying for a competitive edge in live streaming services to attract a large user base. Market analysts suggest that such acquisitions could reshape the gaming landscape significantly, as firms seek to expand their portfolios and capabilities within this rapidly growing market.

With the increasing demand for online gaming and the resultant market boom, this deal could provide ByteDance with critical capital to refocus its strategies. For Savvy, on the other hand, acquiring a well-known gaming entity could accelerate its position within the gaming industry. As these discussions progress, both companies could significantly influence the dynamics of the gaming sector, highlighting the strategic interplay between Eastern tech firms and Middle Eastern investment groups in the global gaming arena.