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.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender