Canadian video game developer Phoenix Labs is likely to be sold as part of cost-cutting measures by its owner Sea Ltd.
As reported by Bloomberg, the Singapore tech firm is looking to sell Phoenix Labs in response to the $160bn decline of the parent company’s market share over the last 15 months, which has led to job cuts and salary freezes.
Subsequently, Sea Ltd is scaling back its overseas operations and focusing on profitability, rather than expansion.
The company acquired Phoenix Labs in Jan 2020 to strengthen its gaming arm Garena. The deal valued the Vancouver-based game developer at over $150m, but there are suggestions that a sale now is unlikely to make the owner any profit on that transaction.
Sea Ltd is said to be working with an unnamed adviser on the potential divestment, though the sale process is yet to formally begin and investor interest has been ‘muted’ so far.
Phoenix Labs also has another office in Montreal, Quebec.