ByteDance is reportedly in talks with multiple prospective buyers to sell it’s gaming assets after it stopped working on new and existing games since November 2023.
One of the prospective buyers, Tencent, is actively pursuing the deal, reported Reuters. ByteDance has been exploring ways to sell it’s gaming assets since mid-last year and due to it also being determined after the recent rules of the Chinese government to crack down on gaming addiction.
Selling Gaming Unit to Focus on Core Business
Though ByteDance has been earning great with TikTok, the company struggles to keep up with it’s gaming business, forcing it to sell it off, eventually. Since mid-2023, ByteDance has been looking for buyers to sell it’s Moonton unit to, which it acquired back in 2021.
And now, it’s preparing to sell the Nuverse wing, too. Reuters reported that ByteDance is in talks with several prospective buyers, with Tencent being one of them. The deal includes selling multiple popular video games like “Crystal of Atland” and “Earth: Revival“, reported LatePost.
ByteDance stopped developing new and existing games back in November last year and decided to pull back from the gaming business to focus better on other core businesses. And selling off Nuverse will significantly help the company with money and remove the burden.
This move comes after the Chinese government announced new rules to contain gaming addiction in the country, where online games will now be banned from giving players rewards for logging in every day, spending on the game for the first time or spending several times on the game consecutively.
This has hit the local gaming industry so much that it wiped out $80 billion. Share prices of two big video game companies, Tencent and NetEase, fell as much as 16% post-announcement.
China has been getting tough on the online gaming industry since 2021. Post-pandemic, the country announced many rules to restrict excessive gaming, especially among teens. Some include setting strict playtime limits and spending approvals.
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