Sea Limited (NYSE:SE) is considering the sale of Vancouver-based indie developer Phoenix Labs Inc. as the South-east Asian Internet giant slashes costs and focuses on its core business, according to people familiar with the matter. The company is working with an adviser on the potential divestment, the people said, asking not to be named as the information is private. The sale process has not formally started and investor interest has been muted so far, said the people.

Sea, the company behind the popular Free Fire battle royale game, acquired Phoenix Labs about three years ago in a deal that valued the game developer at more than USD 150 million (SGD 197 million). Talks are preliminary and there is no guarantee that Sea will be able to sell the studio for more than it paid, the people added.