By Josh Ye

HONG KONG (Reuters) – TikTok owner ByteDance said on Tuesday it is in talks with multiple prospective buyers of its gaming assets, including the world’s largest video games company, Tencent, as the Chinese social media firm retreats from the gaming industry.

Talks are ongoing but no deal has been reached, a ByteDance spokesperson told Reuters.

ByteDance and Tencent are discussing a deal involving multiple popular video games published by ByteDance’s Nuverse gaming unit including “Crystal of Atland” and “Earth: Revival”, local media outlet LatePost reported on Monday.

Tencent did not immediately respond to a Reuters request for comment.

ByteDance in November said it would overhaul Nuverse and retreat from the gaming business to focus on other core businesses, five years after beginning its high-profile foray into the $185 billion global video games market.

The firm stopped working on unreleased games and planned to divest of titles already launched, people familiar with the matter told Reuters at the time.

It has been seeking buyers of its other gaming unit Moonton which it acquired in 2021, Reuters also reported in November.

ByteDance’s relationship with Tencent in gaming has warmed after a rancorous period of competition. Tencent has made heavy use of ByteDance’s advertising network to promote its latest game “DreamStar”, Reuters reported in December.