ByteDance confirms talks with Tencent, other potential buyers over sale of video game operations

Local media reported that ByteDance was lowering the valuation of its gaming studios to try and make a deal after spending more than US$14 million developing titles

Despite its huge success with short video app TikTok and its Chinese version Douyin, ByteDance has failed to achieve returns from its gaming investments

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ByteDance signage is seen on one of its office buildings. Photo: Shutterstock

Published: 1:30pm, 9 Jan 2024Updated: 5:18pm, 9 Jan 2024

TikTok owner ByteDance has confirmed that it is in talks with multiple potential buyers for its video game operations, including Tencent Holdings, the world’s biggest gaming company by revenue.

The confirmation from a ByteDance representative on Tuesday came after local media outlet LatePost reported that the company's gaming unit Nuverse was in negotiations with Tencent regarding the disposal of its operations. According to the report, ByteDance was lowering the valuation of its video gaming studios to try and make a deal after spending more than 100 million yuan (US$14 million) developing various titles.

The representative said that the company has not reached an agreement with Tencent.

In November, the South China Morning Post reported that the Beijing-based company told employees that it would shut down most game projects that had not been released online, and sell rights to at least two of its titles – the anime-style role-playing game Crystal of Atlan and sci-fi survival game Earth: Revival.

ByteDance also started lay-offs at its games unit, which employs nearly 2,000 people, although the exact number of affected employees was not clear. Some workers who want to remain at ByteDance could be allowed to transfer to other teams, the Post reported.