BYTEDANCE is considering selling gaming studio Shanghai Moonton Technology, people familiar with the matter said, as the TikTok owner looks to streamline its operation and focus on core businesses.

The startup is working with an adviser to gauge interest from potential buyers for the studio behind popular game Mobile Legends: Bang Bang, the people said. ByteDance acquired Moonton in 2021 at a valuation of about US$4 billion, the people said.

Discussions are at an early stage and the deal size target couldn’t be immediately learnt, according to the people, who asked not to be identified as the information is private. ByteDance may also decide against a sale, they added. Representatives for ByteDance and Moonton didn’t immediately respond to requests for comment.

ByteDance, founded more than a decade ago by Zhang Yiming and Liang Rubo, grew into an Internet leader worth more than US$200 billion thanks to the virality of short-video platforms TikTok and Douyin. The company has bought game studios and exclusive distribution rights, hoping to jumpstart the games business much as it disrupted social media and rivalled players such as Tencent Holdings and NetEase.

ByteDance has cut some of its game creation and publishing teams, as it shifts focus towards the new growth driver of e-commerce. A sale of Moonton, if struck, would mark the its biggest retreat in the attempt to conquer video gaming.

Founded in 2014 by a pair of Tencent veterans, Moonton is best known for its battle arena title Mobile Legends: Bang Bang, which has struck a chord with fans in South-east Asia. It was approved for release in China in April. Yet the ageing title has struggled to make it in a bigger e-sports arena dominated by Tencent and its subsidiary Riot Games Inc.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

ByteDance has left Moonton to operate in near-autonomy since the 2021 acquisition. Moonton has more than 1,600 employees globally and operates offices in Indonesia, Malaysia, Singapore, Hong Kong and China, its website shows. BLOOMBERG