Savvy Games Group has entered an agreement to acquire mobile studio Moonton Games for $6 billion.
Savvy Games is a subsidiary of the Saudi Arabian sovereign Public Investment Fund (PIF). This agreement is the latest in a series of large-scale acquisitions from the region in recent times, from EA to Pokemon Go maker Niantic.
Now, as reported by Bloomberg earlier today, ByteDance, the parent company of Moonton as well as TikTok, has signed an agreement with the Saudi-backed firm to sell its subsidiary.
In an internal memo reviewed by Bloomberg News, Moonton CEO Zhang Yunfan said the transaction will be finalized in the near future. Zhang and his management team will remain in place, while employees will be offered a range of incentive programs, the memo read.
“This acquisition directly supports Savvy’s purpose to enable prosperity and connection through play for generations to come, and our mission to drive long-term growth and innovation in games and esports,” Savvy Games CEO Brian Ward said in a press release. “Once completed, it will further strengthen our leadership in mobile games, deepen our talent pool, expand our global footprint, and enhance our reach across esports.”
Rumors of the acquisition began last month with a report by Reuters. The figures circulating around were close to the actual value, from around $6 billion to $7 billion.
For reference, Moonton, which ByteDance acquired back in 2021 for $4 billion, is the mobile company behind Mobile Legends: Bang Bang, Watcher of Realms, and Magic Rush: Heroes. The global studio was established in 2014 and currently has over 2,000 employees working at offices across Indonesia, Malaysia, Singapore, the Philippines, Latin America, and China. Its flagship title, Mobile Legends: Bang Bang, has amassed 1.5 billion installs worldwide and over 110 million monthly active users.
Meanwhile, Saudi Arabia continues to invest in global video game companies with large sums of cash. Earlier this week, the firm Electronic Gaming Development Company acquired a five percent stake in Capcom—in addition to the stakes purchased by PIF back in 2022.
It’s worth remembering that PIF is chaired by the crown prince and deputy prime minister of Saudi Arabia, Mohammed Bin Salman, who has faced allegations relating to the assassination of The Washington Post journalist Jamal Khashoggi (those allegations were in the news again last year), the torture of human rights and women’s rights activists, and the formation of an authoritarian regime that facilitates oppression.
Recently, PIF has been poised to become the majority owner of EA as part of a $55 billion take-private. If the buyout goes through, Saudi Arabia will own 93.4 percent of EA. Meanwhile, the video game company said the take-private won’t result in “immediate” layoffs via a FAQ made available to all employees in September 2025.
According to a November report, PIF is reportedly running low on cash for new investments. Aside from the EA bid, the report indicates that a number of the fund’s other investments are in “financial distress” and its managers are racing to reverse course.