Briefing: Bytedance solidifies move into gaming with acquisition

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字节跳动收购三七互娱子公司上海墨鹍,加快布局游戏领域 – Jiemian

What happened: Bytedance has acquired Mokun Technology, a subsidiary of gaming company of 37 Interactive Entertainment that specializes in mobile and web game development, media outlet Jiemian reported. According to the company database website, Mokun Technology has updated its legal representative to the senior vice president of Bytedance-owned Jinri Toutiao, Zhang Lidong, and its holding company to Bytedance. Mokun Technology was founded in 2013 and acquired by 37 Interactive Entertainment in 2017.

Why it’s important: Coming just a month after the launch of Douyin’s first mini game, the acquisition points to Bytedance’s push to establish itself in the gaming market and thereby diversify its revenues. Mokun Technology has not had an impressive year37 Interactive Entertainment stated in January that its performance was lower than expected—but it has a track record of developing high-grossing mobile games. Bytedance could potentially leverage Mokun’s expertise in mobile games and cash in on its traffic.

Correction: This article has been corrected to reflect that the senior vice president of Jinri Toutiao is Zhang Lidong. An earlier version of this story incorrectly stated that his name is Zhang Xudong.