TikTok Parent Company Is Selling Video Game Operations

Bytedance, the parent company of TikTok, is selling its video game operations, and we've got the details here!
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Image: Second Dinner Studios, Inc.

ByteDance, the owner of the popular short-form video platform TikTok, has confirmed it is actively exploring the sale of its video game operations. This has been an ongoing rumor for a while, and it looks like Tencent may be the one who gets it. For those who don’t know, Bytedance games businesses produce or publish games like Marvel Snap, One Piece: The Voyage, and Crystal of Atlan.

ByteDance has reportedly entered into discussions with several potential buyers, including Tencent, the world’s largest gaming company by revenue. Tencent mostly just buys pieces of multiple gaming businesses; they’re not necessarily a publisher or developer. However, an agreement has yet to be reached, and negotiations are ongoing.

It was reported by the South China Morning Post that the company is in discussions with several potential buyers. According to GamesIndustry.biz, to facilitate the sale, ByteDance is reportedly lowering the valuation of its gaming studios. This move highlights the challenges the company has faced in achieving a return on its significant investments in the video game space. Between 2019 and 2022, ByteDance reportedly spent over $4.2 billion on acquisitions and investments in the gaming industry.

Despite the financial backing, ByteDance’s gaming ventures have struggled to compete with established players and consistently generate positive returns. This, coupled with the intense competition within the video game market, is likely a key factor driving the company’s decision to exit the sector. ByteDance has already begun downsizing its gaming operations, having conducted two rounds of layoffs in 2022.

Games like Marvel Snap are expected to remain unaffected by the sale, but the fate of other studios and projects is yet to be determined. We doubt that TikTok’s partnerships with video game publishers, developers, and media will be affected. So far, TikTok has been the crown jewel of Bytedance, and selling its video game arm is just a way to cut out a piece of the business that has yet to make returns on investments.

Jorge A. Aguilar

Jorge A. Aguilar

Jorge A. Aguilar, also known as Aggy, is the current Assigning Editor.

He started his career as an esports, influencer, and streaming writer for Sportskeeda. He then moved to GFinity Esports to cover streaming, games, guides, and news before moving to the Social team where he ended his time as the Lead of Social Content.

He also worked a writer and editor for both Pro Game Guides and Dot Esports, and as a writer for PC Invasion, Attack of the Fanboy, and Android Police. Aggy is the former Managing Editor and Operations Overseer of N4G Unlocked and a former Gaming editor for WePC.

Throughout his time in the industry, he's trained over 100 writers, written thousands of articles on multiple sites, written more reviews than he cares to count, and edited tens of thousands of articles. He has also written some games published by Tales, some books, and a comic sold to Telus International.

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