Strong buyer interest in the Mobile Legends maker underscores renewed appetite for mobile gaming assets as industry consolidation accelerates.

ByteDance is exploring the sale of its gaming subsidiary Moonton in a deal that could value the studio at more than $6 billion, according to people familiar with the matter, signaling a significant new phase of consolidation in the global gaming industry.

The Beijing-based technology group, best known as the owner of TikTok, has opened discussions with potential buyers for Moonton, the Singapore-headquartered developer behind the global hit Mobile Legends: Bang Bang, sources said, cautioning that negotiations remain confidential and no final agreement has been reached.

Interest in the asset is described as strong, reflecting sustained demand for scalable mobile gaming franchises with international reach and recurring revenue models, even as broader technology valuations have experienced volatility over the past year.

Moonton has become one of the most prominent mobile game developers in Southeast Asia, anchored by Mobile Legends: Bang Bang, a multiplayer online battle arena title that commands a loyal user base across Asia, Latin America and parts of Europe while maintaining a thriving esports ecosystem.

Industry analysts estimate that the franchise continues to generate substantial cash flow through in-app purchases, seasonal updates and competitive tournaments, benefiting from resilient engagement despite the normalization of gaming growth following the pandemic-era surge.

People briefed on the talks said several strategic buyers and private equity firms have expressed preliminary interest, attracted by Moonton’s global footprint, established intellectual property and the durability of its live-service model.

The reported valuation of more than $6 billion underscores the premium investors continue to assign to high-performing mobile gaming assets with predictable monetization and long-term community engagement.

For ByteDance, a potential divestment would represent a strategic recalibration after years of expansion into gaming, during which the company invested heavily in studios, publishing operations and cross-platform integration as part of an effort to diversify revenue beyond advertising.

Over the past year, however, ByteDance has streamlined portions of its gaming division and sharpened its focus on core operations including short-form video, artificial intelligence development and e-commerce integration, reflecting a broader shift toward operational efficiency across the tech sector.

Sources indicated that the review of Moonton forms part of a wider portfolio assessment aimed at unlocking capital and reducing organizational complexity while preserving flexibility for future technology investments.

The possible sale also comes amid evolving regulatory and geopolitical dynamics that have prompted Chinese technology firms to reassess overseas holdings and refine governance structures in an increasingly complex global environment.

Moonton’s strengths lie in its live-service architecture, which allows continuous content updates, character expansions and community-driven events that extend the lifecycle of the franchise and support recurring digital spending.

Esports has played a central role in the brand’s expansion, with regional leagues and international championships driving sponsorships, media rights agreements and merchandising opportunities that supplement core in-game revenue streams.

Market observers say that if a transaction is finalized, it would rank among the largest mobile gaming deals in recent years and could catalyze further consolidation as publishers and financial investors compete for proven intellectual property.

The global gaming industry has entered a phase defined less by rapid expansion and more by selective acquisitions, cost discipline and strategic focus, with companies prioritizing durable franchises capable of sustaining engagement across diverse markets.

Artificial intelligence integration into game design, personalization and community management is also reshaping the sector, enhancing development efficiency and reinforcing the appeal of established platforms such as Mobile Legends.

For ByteDance, monetizing Moonton at a premium valuation could strengthen its balance sheet and reinforce its commitment to concentrating resources on high-growth verticals aligned with its long-term technological ambitions.

Neither ByteDance nor Moonton publicly commented on the reported discussions, but market participants are closely watching developments that could reshape the competitive landscape of mobile esports and international game publishing.

As the technology industry continues to evolve, ByteDance’s potential exit from Moonton illustrates how even the most ambitious diversification strategies are subject to reassessment in a global market increasingly defined by strategic focus and capital efficiency.