China’s Bytedance acquires Mokun to tap into gaming industry

Bytedance
The logo for Beijing ByteDance Technology Co.'s Jinri Toutiao mobile app is displayed at the company's headquarters in Beijing, China, on Thursday, Aug. 17, 2017. Photographer: Giulia Marchi/Bloomberg

Bytedance, the owner of popular teen video app Douyin, has bought out China’s mobile game developer Mokun Technology as it aims to grow further in the gaming industry, according to a South China Morning Post report.

Established in 2013 by Shenzhen-based game developer 37 Interactive Entertainment, Mokun Technology is specialised in the development of internet boutique game products. It developed Three Kingdoms Game, distributed by Bytedance’s short video rival Tencent Holdings, and Fighter of the Destiny, which gained almost 200 million yuan in the first month after it was launched.

After being acquired, it is now wholly-owned by Bytedance’s subsidiary Beijing Zhaoxi Guangnian Technology. The report cited that Zhang Lidong, a senior vice-president and legal representative at Bytedance, has been appointed as executive chairman at Mokun Technology.

Prior to this deal, Bytedance’s Douyin launched its first in-app game, Music Jumping Ball. Meanwhile, Bytedance was ordered to pay $5.7 million last month to settle claims by the US government that it gathered personal information from children illegally.

Also read:

Bytedance launches video chat app to take on Tencent’s WeChat

World’s most valuable startup ByteDance to raise about $1.45b for its venture fund