TikTok’s Parent Company Enters the Gaming Industry
ByteDance Acquires Moonton
ByteDance has purchased mobile gaming studio Mooton as it works to gain ground in the $86 billion mobile gaming market. ByteDance is the Chinese parent company of TikTok and its Chinese counterpart, Douyin.
The Moonton deal was reportedly valued at $4 billion. Analysts expect that ByteDance will be on the lookout for other mobile gaming studios to purchase in the near future.
Competing With Tencent
ByteDance’s acquisition puts it in competition with the Chinese technology giant, Tencent (TCEHY). Tencent has acquired a number of gaming companies in recent years. It has also taken stakes in small gaming startups and has developed other games in-house.
Tencent owns a 40% stake in Epic Games, which makes the popular game Fortnite. Tencent’s gaming business has allowed it to rake in revenue from around the world. ByteDance will likely pursue a similar strategy.
One of Moonton’s most popular games is called Mobile Legends. This is a multiplayer battle game similar to several of Tencent’s big titles including Honor of Kings and League of Legends.
Leveraging TikTok and Douyin
The video game industry has seen surging growth during the pandemic as people have looked for ways to entertain themselves at home. It has also become intensely competitive as companies rush to fill this growing demand.
ByteDance will face stiff competition as it enters the gaming market, but it will have a significant advantage over many other game developers because of its social media platforms. TikTok has 700 million monthly active users and Douyin has 600 million daily active users. ByteDance will work to leverage these platforms to encourage users to engage with its games.
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