Tencent has been quietly buying into the video game market for some time now. It is a mammoth of entertainment and the Internet in China – a Chinese equivalent of Google or Facebook. Tencent also has more than 300 investments within its portfolio.
TMT Finance has had sources informing them that Tencent is currently raising “billions” to acquire another addition to the portfolio. Rumours are speculating that it will be a large-scale company such as EA or Take-Two. These two companies are vunerable to an approach known as a “hostile takeover.”
Tencent are known for this tactic from previous acquisitions. In 2011 they paid $400 million for a 93% stake in the League of Legends developer Riot Games. In 2015 they made a deal to take hold of the remaining 7% for an undisclosed amount.
Tencent also currently own 40% of Epic Games after a $330 million investment in June 2012 as well as a whopping 80% of Grinding Gear Games which was snapped up in 2018. Other stakes are 11.5% of Bluehole and 5% of Ubisoft to name but a few of the 300-strong portfolio.
“Improve the quality of life through Internet value-added services.”Tencent Mission Statement
There are plenty of other names to add to the list, like Supercell, Platinum Games, Yager, Frontier Developments, Discord and more that Tencent have stakes in. So the rumour is that a large US-based gaming company is what Tencent are rubbing their hands together over, however there is also speculation that NetMarble, South Korea’s largest mobile game maker, and Nexon, the developer behind the game Dungeon Fighter are targets for a hostile takeover. Whatever the situation, the media world await a comment from Tencent on these speculations.