TapTechNews reported on May 13 that ByteDance has abandoned plans to sell its most valuable game asset, MuTong Technology, which it acquired to challenge Tencent, and plans to appoint a new CEO for the game studio.
According to sources familiar with the matter, the new CEO of MuTong Technology is Zhang Yunfan, former executive of Perfect World, who will replace MuTong Technology co-founder and CEO Yuan Jing. Sources said that ByteDance decided to change its strategy instead of selling the studio, which it acquired three years ago for a valuation of $4 billion (approximately 289.6 billion RMB).
As part of a large-scale reduction in game costs, ByteDance had considered selling MuTong, as the company has been striving to refocus on core products such as TikTok. ByteDance laid off hundreds of game development positions and shut down several projects in March.
Prior to joining ByteDance, Zhang Yunfan held various positions at Perfect World, including Chief Operating Officer. It is currently unclear whether Yuan Jing will stay at MuTong Technology. Yuan Jing founded MuTong Technology ten years ago and led the company to surpass his former employer Tencent in the arena of competitive games in the Southeast Asian market.
Since the acquisition in 2021, ByteDance has allowed MuTong to operate almost independently. However, with the studio struggling to release the next hit game, Zhang Yunfan's appointment may signify a strategic shift.