ByteDancethe company that owns the social network TikTokwhich does not want to sell despite strong US pressure, has sold C4 Games, the development studio to which we owe Red Alert Online. The buyer is the China Ruyi company, which deals with film productions. The deal closed for 259 million yuan, or approximately 36 million euros at current exchange rates.
According to what was reported by Niko Partners, the agreement provides for the acquisition of 100% of the studio by China Ruyi. The studio will continue to work on Red Alert Online even after the change of hands, with Chinese giant Tencent remaining the publisher.
It should be underlined how Tencent currently owns a 21.97% stake in China Ruyi. Let’s say that in this way you have almost taken complete control of the developer.
Escape from the sector
According to the new ownership, Red Alert Online showed stable performance in the last three years. There is a lot of confidence that it will continue to generate substantial revenue in the foreseeable future as well.
But how much revenue did it produce? Many, more than most triple A launched on the traditional market, despite not being as successful as hits such as Candy Crush Saga and similar. According to AppMagic estimates, the title has brought in $385.9 million from Apple’s Chinese App Store over its entire commercial lifecycle. As of 2023, it has grossed $32.4 million.
China Ruyi told the Hong Kong Stock Exchange that C4 Games generated 2.9 million yuan in profits (around 400,000 euros) in 2022, less than the 4.4 million yuan in 2021.
ByteDance acquired C4 Games in April 2021 for an undisclosed sum. At the time the company wanted to expand into the gaming sector. However, that project seems to have failed and it is now divesting its resources. Earlier this month it sold two studios to Tencent, one based in Shenzhen said to be working on an action game and the other in eastern China said to be developing an anime-style title. Nothing is known yet about both, not even if they will ever leave the local market.
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