ByteDance is reportedly negotiating to sell Shanghai Moonton Technology—the studio behind Mobile Legends: Bang Bang—to Saudi Arabia's Savvy Games Group for somewhere between $6 billion and $7 billion.
On the surface, it's a gaming deal. But what caught my attention is the pattern. You've got a Chinese tech giant looking to divest a valuable gaming asset, and on the other side, a Saudi sovereign wealth-backed entity aggressively buying into interactive entertainment. Savvy has been on a spending spree, and this fits the broader Gulf strategy of diversifying away from oil into tech, esports, and digital infrastructure. Meanwhile, ByteDance is selectively shedding non-core assets.
The timing matters. Big tech doesn't unload billion-dollar studios unless there's pressure—regulatory, financial, or strategic. And sovereign funds don't write checks this size without a long-term thesis. Worth watching where else this capital redeploys.