Alibaba Rival Sea Eyes Sale Of Phoenix Labs Game Developer To Focus On Core Business

Sea Limited SE weighed the sale of Vancouver-based indie developer Phoenix Labs as the Southeast Asian internet giant slashed costs and focused on its core business.
The Singapore-based gaming and e-commerce company worked with an adviser on the potential divestment, Bloomberg reports.
Sea acquired Phoenix Labs about three years ago in a deal that valued the game developer at over $150 million.
Sea scaled back its overseas footprint and peripheral businesses as rising competition forced the company to focus on profitability rather than expanding abroad.
Sea faced increasing pressure to cut costs, with growth in its e-commerce and gaming business slowing, losing over $160 billion of its market value since October 2021.
Consumers became cautious about online spending post-pandemic recovery, as rising interest rates and prices weigh on the economy.
In December, Sea founder Forrest Li decided to freeze salaries for most staff and pay out lower bonuses, bracing for an aggravating global economic environment in 2023.
Sea made deep job cuts in 2022.
Price Action: SE shares traded lower by 2% at $62.72 on the last check Wednesday.