Sea Group is reportedly looking to sell indie games developer Phoenix Labs, reported Bloomberg, citing people familiar with the matter.
The plan is part of Sea’s efforts to cut costs and focus on its core business.
Bloomberg said that the sale process has not yet started. Sea is reportedly in discussions with an adviser regarding the plan.
In 2020, Sea acquired Vancouver-based Phoenix Labs for more than US$150 million to strengthen its gaming arm Garena. However, Garena’s business was expected to slow down in 2022, particularly after its hit game Free Fire was banned in India.
See also: Shopee’s success in Brazil justifies global expansion
Sea has taken several steps to reduce its expenses to help it achieve profitability. Its ecommerce arm Shopee has closed its operations in Europe, India, and four Latin American countries. The platform also carried out a series of layoffs last year.
In September 2022, Sea CEO Forrest Li said that the firm is forgoing the salaries of top management and revising company expense guidelines.
Editing by Miguel Cordon and Lorenzo Kyle Subido
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