ByteDance, the Chinese parent company of TikTok, is reportedly in advanced negotiations to sell its video game division, specifically Shanghai Moonton Technology, which is known for its popular mobile game Mobile Legends: Bang Bang. The potential deal, valued between $6 billion and $7 billion, involves discussions with the Saudi gaming group Savvy Games Group. This significant sale is poised to occur within the current quarter, reflecting a strategic move by ByteDance to offload assets and possibly streamline its operations amid changing market dynamics.

The conversations have reached a stage where both companies have settled on the general terms of the agreement, according to sources familiar with the discussions. However, the identities of these sources remain confidential, highlighting the sensitivity surrounding the negotiations. The sale would mark a prominent venture by Savvy Games Group, which has been actively working to expand its portfolio in the gaming industry.

If finalized, this deal could have far-reaching implications for both companies. For ByteDance, divesting from Moonton could allow it to refocus on its core business areas while addressing any financial constraints. Conversely, for Savvy Games Group, acquiring a well-established game studio could significantly enhance its market presence and broaden its offerings in the competitive gaming landscape.