Potential Benefits and Risks of Byte Dance’s Acquisition of Moonton: A Case Study Based on SWOT Analysis

Abstract

In March 2021, ByteDance successfully acquired Moonton Technology and continued to expand ByteDance’s game industry. This article aims to investigate why ByteDance chose Moonton Technology among many overseas game companies, how the two parties completed the acquisition successfully, as well as the benefits that can be brought to both parties after the acquisition and the post-acquisition management model, and analyze how Moonton Technology can gain a leading edge in the competition with Tencent or what strategies and prominent games should be adopted. Based on the SWOT analysis method, this article explains the advantages, disadvantages, opportunities, and threats of Byte's acquisition of Moonton Technology, so as to make a correct analysis and future planning for this investor and manager. This article creates a new perspective for investors to understand ByteDance and Moonton Technology. This article suggests that investors should understand the background of the acquired company and whether it can produce synergies before investing, and consider long-term future planning.