ByteDance, TikTok’s owners ready to sell gaming assets
TikTok’s owners, ByteDance are ready to sell their gaming assets with reports saying gaming giant, Tencent are involved in the deal.
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As the Chinese social media company withdraws from the gaming business, Tencent, the largest video game company in the world, is among the potential buyers of ByteDance’s gaming assets, which it disclosed on Tuesday.
During the talks, the company would sell Nuverse, a video game publisher owned by ByteDance, a company based in Beijing. The company once saw Nuverse as essential to its effort to overtake Tencent, one of China’s biggest media conglomerates and a leader in the global gaming market.
What is Nuverse?
Nuverse was first established in 2019 as a publisher of video games. Warhammer 40,000: Lost Crusade was the first game to be released outside of China’s mainland in 2021. Moonton won the initial Tencent bid and joined Nuverse as a subsidiary later in 2021. In 2022, the studio released Marvel Snap on a global scale in October following closed alpha testing in the Philippines and a gradual rollout of open beta, with New Zealand serving as the first nation to participate. It was announced in November 2023 that ByteDance was reorganising Nuverse and stepping away from the game industry.
Five years after starting its highly publicised entry into the $185 billion global video game market, ByteDance announced in November that it would restructure Nuverse and leave the gaming industry to concentrate on other core businesses.
According to those familiar with the situation, the company ceased development on unreleased games and intended to sell off already-released titles, as reported by Reuters at the time. It has been looking for buyers for Moonton, the other gaming division it purchased in 2021. After a bitter rivalry-filled phase, ByteDance’s relationship with Tencent in the gaming industry has improved. Tencent has heavily promoted its newest game, “DreamStar,” using ByteDance’s advertising network.
Conclusion
ByteDance’s departure from gaming and the potential acquisition of its Nuverse gaming assets by Tencent signifies a pivotal moment in the gaming industry. This shift, announced in November, reflects ByteDance’s strategic pivot away from gaming to refocus on core business areas. Nuverse, initially aimed at challenging Tencent’s dominance, now faces restructuring and potential sale of its gaming divisions.
The evolving relationship between ByteDance and Tencent, from fierce rivals to potential business partners, adds intrigue to this development. Tencent’s interest in acquiring ByteDance’s gaming assets could further solidify its leading position in the global gaming market.
This unfolding narrative highlights the fluidity of the gaming industry, where strategic decisions and acquisitions reshape the competitive landscape. The outcome of these negotiations will reverberate throughout the gaming sphere, signifying potential shifts in ownership and alliances. Industry stakeholders eagerly anticipate the implications, marking a significant chapter in the ongoing saga of gaming industry dynamics.
