ByteDance is edging closer to a major exit from the video games sector, with advanced negotiations underway to offload Shanghai Moonton Technology to Saudi Arabia’s Savvy Games Group. The studio, best known for the hit mobile title Mobile Legends: Bang Bang, is understood to be valued at between $6 billion and $7 billion.

According to sources familiar with the discussions, an agreement could be finalised as soon as this quarter. One source said the two sides have already aligned on the broad commercial framework of the transaction, signalling that talks have progressed beyond preliminary exploration. The individuals declined to be identified as they were not authorised to comment publicly.

If completed, the deal would further accelerate consolidation across the global gaming industry. Major players have been competing to secure valuable intellectual property, expand distribution reach and strengthen their presence in key international markets, fuelling a wave of high-value acquisitions.

For ByteDance, the sale would represent a significant pullback from online gaming. The company announced in 2023 that it would restructure its gaming division following a strategic review, a move that now appears to be culminating in a potential divestment of one of its most prominent studios.