Tencent acquires two ByteDance video game units

Tencent-ByteDance deal: Tencent has acquired two video game units from ByteDance as ByteDance withdrew from the gaming sector last year, sources told Reuters.

The acquired teams are working on an action game in Shenzhen and an anime game in East China. 

The source, speaking on condition of anonymity, stated that these teams have been consolidated into a new company named "Saluosi," fully-owned by a Tencent investment entity.

Neither ByteDance nor Tencent responded to Reuters' request for comments.

Reports emerged in January indicating ByteDance's negotiations with various potential buyers for its gaming assets, including Tencent.

ByteDance made the decision to exit the majority of its video games business in November, marking the end of its five-year venture into the $185 billion global video games market.

(With Reuters Inputs)