Tencent has reportedly taken over two ByteDance games teams, and has consolidated them into a new company.

As reported by Retuers, the studios that have allegedly been required are a Shenzhen-based firm working on an action game, and another in East China working on an anime title.

These teams have reportedly been merged into a studio called Salusoi, which is wholly-owned by a Tencent investor.

Both Tencent and ByteDance declined comment to Retuers.

This news comes after ByteDance confirmed that it was in talks to sell its video games operations, with Tencent reportedly in talks as a potential buyer.