TikTok’s parent company, ByteDance, has sold Red Alert Online developer C4 Games to film and entertainment company China Ruyi for ¥259 million ($35.8 million). According to Niko Partners, the transaction gives China Ruyi a 100% stake in the studio.

Despite the acquisition, C4 Games will continue to operate Red Alert Online, with Tencent remaining as the game's publisher. Notably, Tencent owns a 21.97% stake in China Ruyi.

China Ruyi expressed confidence in Red Alert Online's future revenue potential, noting the game's stable performance over the past three years. AppMagic estimates that the game has generated $385.9 million from China’s Apple App Store since its launch, with $32.4 million earned in 2023 alone.

In a filing to the Hong Kong Exchange, China Ruyi reported that C4 Games generated ¥2.9 million ($401,000) in profit after tax in 2022, a decline from ¥4.4 million ($610,000) in 2021.

ByteDance Exits Gaming Industry

ByteDance acquired C4 Games in April 2021 for an undisclosed amount as part of its broader expansion into the gaming industry. However, the company has since decided to exit the gaming sector and is “aggressively downsizing” its gaming operations.

Earlier this month, ByteDance sold two other studios to Tencent. One of these teams, based in Shenzhen, was rumored to be developing an action game, while the other, located in East China, was said to be working on an anime title.

The sale of C4 Games marks another step in ByteDance’s strategic withdrawal from the gaming business, as it refocuses its efforts on other areas of its expansive portfolio.

Source: adapted from an article by Craig Chapple, Head of Content for Pocketgamer.biz.