ByteDance sells Mu Tong, Zhang Yunfan continues as CEO

This is a win-win deal.

ByteDance’s gaming company, Mu Tong Technology, has ultimately fallen into the hands of Saudi capital.

On March 20, an internal letter from Mu Tong was circulated online, announcing that Saudi Savvy Games Group will acquire Mu Tong, and the two sides will complete the transaction within a period of time. After the deal is finalized, Mu Tong will become a wholly owned subsidiary of Savvy.

Multiple sources confirmed that the acquisition is underway. The First Financial Reporter also separately confirmed with ByteDance and Mu Tong officials; as of press time, no response has been received.

According to the leaked internal letter, after the transaction, Mu Tong’s management structure will remain unchanged, and it will still be a Shanghai-based company. Zhang Yunfan, head of ByteDance’s gaming business, will continue to serve as Mu Tong’s CEO.

The internal letter did not disclose the specific transaction amount, but there are reports that the purchase price exceeds $6 billion. ByteDance acquired Mu Tong Technology in 2021, with reports at the time indicating the deal was over $4 billion. If the transaction is accurate, this investment has appreciated by 50% over five years.

“After dragging on for years, Mu Tong is finally sold,” said gaming industry analyst Zhang Shule to First Financial. “This is a win-win deal.”

For the seller, ByteDance has resolved a profitable but strategically weak asset, and the price exceeded expectations; for the buyer, Saudi Arabia now owns its own hit esports game, and leveraging esports and its related industries, it has the potential to build a second economic pillar beyond oil. With a solid foundation, it can expand the esports industry chain, reducing the risk of major uncontrollable fluctuations caused by mainstream esports games being controlled by large well-known companies.

After acquiring Mu Tong in 2021, ByteDance’s gaming division underwent a large-scale contraction in 2023. Rumors then circulated that ByteDance planned to sell Mu Tong and focus on core businesses. It wasn’t until November 2025 that clearer information emerged, with foreign media reporting that Saudi Savvy was in negotiations with ByteDance over acquiring Mu Tong. In February this year, further reports indicated the valuation of the deal was between $6 billion and $7 billion. Negotiations began in the second half of 2025, with key terms reaching consensus in early 2026.

The internal letter also mentioned that after the transaction, based on past performance contributions, Mu Tong employees will be offered multiple incentive plans, including accelerated vesting and distribution of some long-term incentives granted previously. Additionally, new attractive incentive schemes will be introduced based on future performance.

Founded in 2014, Mu Tong initially focused on overseas markets. Its flagship game is the MOBA mobile game “Mobile Legends: Bang Bang,” which quickly gained popularity in Southeast Asia, especially in Indonesia, where it became a “national game” and remains among the top grossing overseas titles.

According to Sensor Tower data, in 2025, “Mobile Legends: Bang Bang” ranked 11th in China’s mobile game revenue abroad. The game has been online for nearly ten years, with global revenue approaching $2.4 billion.

In January this year, Mu Tong’s official data showed that “Mobile Legends: Bang Bang” had over 110 million monthly active users, with more than 1.5 billion registered users across over 220 countries and regions. Its professional league was the first esports league to surpass 1 billion hours of viewership, representing China’s gaming and esports export success.

Below is the full internal letter from Zhang Yunfan:

Hello everyone, recently our company signed an agreement with Savvy Games Group (“Savvy”), and both sides will complete the transaction within a period of time. After the deal is finalized, Mu Tong will become a wholly owned subsidiary of Savvy. Meanwhile, Mu Tong’s management structure will remain unchanged, and it will still be a Shanghai-based company. I will continue to serve as Mu Tong’s CEO, leading the management team to move forward.

This transaction was carefully considered and discussed. “Creating exciting experiences for global players” remains Mu Tong’s mission. Since launching in 2016, “Mobile Legends: Bang Bang” has been loved by many players, and based on this, we have built a professional and rich esports ecosystem. This aligns with Savvy’s mission “to promote long-term development and innovation in gaming and esports” and its esports plans. I believe that through cooperation with Savvy, Mu Tong will have broader development opportunities and bring better gaming experiences to more players worldwide.

After the transaction, based on past performance contributions, we will provide multiple incentive plans for Mu Tong employees, including accelerated vesting and distribution of some long-term incentives. Additionally, new attractive incentive schemes will be introduced based on future performance. Details will be communicated by team leaders and HRBP.

In the past two years, we have achieved good results. I believe we will create an even brighter future together!