According to a source, China ByteDance is in talks to buy mobile game publishing company CMGE Technology Group Ltd with the aim of strengthening the company's growth.
However, a GMGE spokesperson revealed that they did not hold any talks to sell its shares to ByteDance while saying that they had held joint discussions but were not interested in buying the gaming company.
In addition, ByteDance allegedly plans to buy part or all of the 27.6% of CMGE shares held by Fairview Ridge Investment Ltd, which is owned by CMGE chairman Xiao Jian and vice chairman Sin Hendrick.
This is driven by the gaming industry which has benefited from the spread of the Covid-19 pandemic that forced people to stay at home thus increasing game downloads.
In addition, ByteDance would like to offer HK $ 4 to HK $ 5 per share to purchase the shares.
Following the news, CMGE shares recorded a 21% increase to HK $ 3.75 in today's afternoon session, the highest level since mid-October, before closing 1%.
For everyone's knowledge, 8-year-old ByteDance has identified the gaming sector as its next strategic growth medium and has been looking for investment opportunities for months to develop its gaming portfolio.
As such, market leader Tencent Holdings Ltd proposed the acquisition of $ 1.5 billion in Leyou Technologies Holdings Ltd in August and now, making CMGE the target of ByteDance.
