Chinese game developers and publishers completed 43 mergers and acquisitions during the first half of 2026, according to an analysis of the domestic market. Youxi Tuoluo reported that the combined value of the transactions exceeded 60 billion yuan, or approximately $8.86 billion.
The figures show how actively China’s largest gaming companies and newer investment groups are using minority stakes, strategic purchases and full acquisitions to strengthen their pipelines. The activity also reflects a market in which established publishers are competing to secure experienced teams before their projects become expensive global successes.
The Chinese data adds a regional layer to the broader recovery in gaming transactions. FluxGamer recently covered how global gaming M&A deal count reached its highest level since 2022 during the second quarter, even though the total value of transactions remained below the previous year.
China’s first-half figures point to a similar pattern: a large number of deals, strong interest in young studios and a preference for strategic minority investments rather than full takeovers. Only four of the 43 transactions involved a controlling stake or outright acquisition.
Moonton Sale Dominates the Deal Value
The largest transaction by a wide margin was Savvy Games Group’s agreement to acquire Shanghai-based Moonton Games from ByteDance for approximately $6 billion. The deal alone accounted for more than two thirds of the total value attributed to Chinese gaming M&A during the six-month period.
Game Developer reported that Savvy agreed to buy the Mobile Legends: Bang Bang developer as part of its effort to expand in mobile games and esports. ByteDance originally acquired Moonton in 2021 in a deal that valued the studio at roughly $4 billion.
Moonton is one of China’s most internationally successful mobile game companies. Its flagship title, Mobile Legends: Bang Bang, has built a particularly strong audience in Southeast Asia and supports a large global esports ecosystem. That scale helps explain why the studio commanded a price more commonly associated with major Western publishers.
The transaction is also unusual within the first-half dataset because most Chinese deals involved buyers taking less than 50% of the target company. The Moonton acquisition represents a complete transfer of ownership and illustrates the global demand for Chinese studios with established intellectual property, live-service expertise and international distribution.
Tencent Expands Its Portfolio Through Minority Stakes
Tencent was predictably one of the most active investors. Youxi Tuoluo identified at least three teams in which the company acquired or pursued stakes during the first half: Game Science, FireWo Games and Hungry Studio.
Tencent increased its position in Game Science, the developer behind Black Myth: Wukong, after purchasing additional shares from Hero Games. Game World Observer reported that Tencent’s ownership rose from 5% to 24%, making it the studio’s only outside shareholder.
The investment strengthens Tencent’s connection to one of the most commercially important Chinese premium game studios. Black Myth: Wukong demonstrated that a China-developed AAA title could achieve global scale, and Game Science is now working on another title in the same universe, Black Myth: Zhong Kui.
FireWo Games is developing The Bustling World, an open-world role-playing and simulation game inspired by ancient China. The project combines exploration, survival, city building and management systems, making it another example of a Chinese studio pursuing a globally marketable PC and console game rather than focusing only on domestic mobile releases.
Tencent has also been discussing a minority investment in Hungry Studio, although that transaction was not closed at the time of the analysis. Moneyweb reported that talks involved a small stake in the developer of Block Blast!, one of the biggest mobile puzzle games in the world.
Hungry Studio’s commercial appeal is easy to understand. FluxGamer previously reported that Block Blast! led mobile game advertising revenue from January through May 2026 with an estimated $127 million, while Hungry Studio ranked first among publishers by ad revenue in the same period.
Young Studios Attract Experienced-Founder Capital
One of the most revealing findings is the age of the companies being acquired. Approximately half of the studios sold fully or partially during the first half of 2026 had been established within the previous two years.
That does not necessarily mean investors were backing inexperienced teams. Twenty-one of the transactions involved studios founded by veteran developers who had previously worked at large companies or contributed to recognized games.
This pattern is common during periods of restructuring. Senior developers leave major publishers, form smaller studios and use their production history to attract early strategic capital. Large companies can then secure access to talent and future projects without immediately absorbing the entire team.
Minority ownership also gives founders room to retain operational control. Investors gain exposure to a potentially valuable studio, while developers receive funding, publishing support, technology, distribution or access to large user ecosystems. Tencent has used this model extensively across China and international markets.
Other major companies active in gaming M&A during the period included NetEase, miHoYo, Giant Network and 37 Interactive Entertainment. Their involvement shows that the competition for promising teams extends beyond Tencent and includes publishers with different strengths across mobile games, PC development, global publishing and live operations.
China’s Gaming Market Is Consolidating Selectively
The first-half data does not point to a wave of conventional takeovers. Instead, it shows selective consolidation built around minority stakes, experienced founders and projects with the potential to reach audiences outside China.
That distinction matters because Chinese publishers are balancing several risks. Domestic regulation can affect launch schedules and monetization, while global expansion requires more expensive production, localization and marketing. Minority investments allow large companies to spread capital across multiple teams without committing to full ownership.
The $6 billion Moonton sale makes the headline value appear unusually high, but the underlying deal count shows a deeper trend. China’s game industry is continuing to reorganize around studios that can deliver globally competitive products, strong mobile monetization or distinctive cultural IP.
For founders, the current environment offers more potential buyers and strategic partners. For large publishers, it creates a race to identify the next Game Science, Moonton or Hungry Studio before valuations rise further. With 43 transactions completed or announced in six months, Chinese gaming M&A has become one of the most active parts of the global deal market.
