ByteDance Disbands Shanghai Games Studio in Expansion Setback

(Bloomberg) — ByteDance Ltd. shut down a game development studio it acquired just three years ago, slashing more than 100 jobs in a major setback for its quest to challenge Tencent Holdings Ltd. in mobile gaming.

TikTok’s Chinese owner disbanded its 101 Studio in Shanghai this week, letting about half of the 300-plus staffers go and offering internal transfers to the rest, according to people familiar with the matter who asked not to be named discussing private information. The unit was one of a handful of key game-development houses that ByteDance bet on to power its expansion into activities beyond its core short-video business.