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China's ByteDance picks up stake in local game publisher

Beijing ByteDance Technology Co. Ltd., operator of Chinese short video app TikTok, made an investment in game publisher Shanghe Internet Technology (Shanghai), KrASIA reported.

The investment, financial terms of which were not disclosed, reportedly gives the parent company of news app Jinri Toutiao a 45.19% stake in the game studio.

The deal comes shortly after ByteDance purchased Shanghai-based game developer Mokun Technology Co. Ltd. following the release of its own in-app game in February. The transaction also follows ByteDance's move to build an internal platform to support its livestreaming business after acquiring a shopping center in Beijing early this year.

ByteDance closed a pre-IPO financing round in October 2018, which boosted the company's valuation to US$75 billion. In a bid to expand its online education business, ByteDance acquired part of handset maker Smartisan Digital Co. Ltd. in January.