ByteDance, known as the company behind TikTok, has completed the acquisition of Moonton. Moonton is a large game studio that focuses on games for mobiles. Their most popular game is “Mobile Legends: Bang Bang”.
The acquisition is a clear sign of intent for the company to foray into the mobile gaming industry. With the recent acquisition, the company will be hoping to compete better with Tencent.
The Story Of ByteDance So Far
ByteDance has so far been a major player in advertising. The mobile gaming industry, which is estimated to be worth around $86B, can offer a much bigger profit for the company. Furthermore, the company can also use this as an excellent opportunity for spreading their business internationally.
Nuverse, the gaming division of the company, made the acquisition. Moonton’s estimate is worth around $4B. However, no official statements were made. Experts believe that this is one of the most significant deals in the gaming industry. The impact of the deal will not be limited to China and is expected to echo through the world. Experts continue that this marks the beginning of a long battle between ByteDance and Tencent over the gaming industry.
Tencent, in recent years, has come out as one of the best mobile game developers. Their strategy involved acquisitions, having stakes, and producing their titles. As such, there are several games under the brand which is highly profitable for Tencent. Furthermore, it was the gateway for Tencent to become an international brand.
Moonton’s Mobile Legends is one of the most popular MOBAs in the south-eastern countries of Asia. With the acquisition, the company will be competing against titles such as League of Legends: Wild Rift from the house of Tencent.
Given the popularity of TikTok, the company has an added advantage in terms of promotion. However, experts believe that ByteDance will need to produce its titles to ensure proper and enduring success.
