ByteDance confirms it is in talks to sell games business
Tencent among the potential buyers as TikTok parent reportedly lowers valuation of its studios
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TikTok owner ByteDance has confirmed it is currently in discussions to sell its video games operations.
The confirmation comes via South China Morning Post, which reported the company is in talks with a range of potential buyers, including the world's biggest games firm Tencent, although no agreement has been reached yet.
Reports that ByteDance was planning to sell its gaming arm Nuverse have been circulating since November, shortly after it was reported the company was planning to sell Mobile Legends: Bang Bang developer Moonton Technology.
Citing local media outlet LatePost, SCMP also reported that ByteDance has been lowering the valuation of its games studios in order to secure a deal.
The TikTok parent is said to have spent more than 100 million yuan ($14 million) on development for various titles.
ByteDance has been reducing the scope of its games operations, having made two rounds of layoffs in 2022.
Titles produced or published by ByteDance's games business include Marvel Snap, One Piece: The Voyage and Crystal of Atlan, although Marvel Snap developer Second Dinner has clarified that it should remain unaffected by ByteDance's restructuring.
According to SCMP, ByteDance spent around 30 billion yuan ($4.2 billion) on acquisitions and investments in the video game space between 2019 and 2022, but it has failed to achieve a return on this investment.