ByteDance could be in talks to purchase mobile games publisher CMGE Technology Group.
As reported by Reuters, the Chinese firm is looking to buy the 27.6 per cent stake in CMGE that is held by Fairview Ridge Investment. It is said that the stake is worth $275 million.
To secure the deal, ByteDance is set to offer around HK$4 to HK$5 ($0.52 to $0.64) per share. As of Monday, CMGE's current stock price is HK$3.08. Therefore, ByteDance could give 30 per cent to 62 per cent more.
It is claimed that the games industry has become a priority for the TikTok parent company.
Entering the industry
ByteDance has already stepped into the games industry. Last month, the Chinese company launched a new mobile games storefront and a publishing arm.
Meanwhile, back in March, ByteDance experienced success with its casual title Combat of Hero. The mobile game secured the top spot for iOS downloads in Japan for four consecutive days.
By the end of 2019, ByteDance had launched 13 mobile titles in China, via the App Store.