Tencent accelerates games company acquisitions

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LOS ANGELES: Chinese social media and entertainment giant Tencent is understood to have paid US$260 million for a majority stake in Bohemia ...

Tencent, which is already the world's largest games company in revenue terms, owns League of Legends developer Riot Games, an 84 per cent stake in Supercell , 80 per cent of New Zealand's Grinding Gear Games , 40 per cent of Epic Games, 14.5 per cent of Glu Mobile, 11.5 per cent of Bluehole, and 5 per cent stakes in Activision Blizzard, Ubisoft and Paradox Interactive.

Earlier this year Tencent spent US$201 million buying control of Funcom, maker of The Secret World and Conan Exiles, and an undisclosed amount for a minority stake in German studio Yager, maker of Spec Ops: The Line and The Cycle.Some games industry analysts have suggested that Tencent is buying games firms as it has a limited games design capacity of its own.

Despite the rash of games industry activity, Tencent may in fact have shifted its focus to other business areas. The company was a beneficiary of the recent lockdown in China caused by the coronavirus outbreak, and it enjoyed particular benefit to its business software lines.

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