UPDATE 1-ByteDance says its video games unit will acquire Mooton Technology

(Updates with ByteDance statetment)

March 22 (Reuters) – ByteDance said on Monday its video games unit Nuverse has agreed to acquire Shanghai-based Mooton Technology, as it seeks to further expand into the video games business.

The acquisition of the video games studio come as ByteDance, the owner of TikTok and the similar Chinese short video platform Douyin, has made sizeable inroads into the video games business, putting it in direct competition with China’s Tencent.

“Through cross-team collaboration and drawing on lessons and insights from its own rapid growth, Moonton provides the strategic support needed to accelerate Nuverse’s global gaming offerings,” ByteDance said in a statement.

In an internal memo, Yuan Jing, CEO of Mooton, said the company would operate independently from ByteDance after the acquisition, a source told Reuters on condition of anonymity as he is not…