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Tuesday, May 21, 2024

Chinese tech giant Tencent ‘may force’ hostile takeover of an American game company

Tencent, China’s technology giant is eyeing a debt-financing from several firms, which sources say could amount to billions. The fund which Tencent is creating will be to take control of U.S. game development companies, and industry insiders suggest, it could well be a forced and hostile takeover.

Several sources including TMT Finance (via TweakTown) reveal that Tencent is gearing up to create a fund that will enable it to take control of U.S. gaming companies. The sources suggest that the company could be Grand Theft Auto, Red Dead Redemption’s parent company, Take-Two Interactive. The other company in the news vulnerable to the hostile takeover is the sports game development company EA Sports.

The other aspect of this report focuses on a rather feasible scenario where several South Korean game development companies, where Tencent has significant holding, could be at the center of acquisition. The company in the crosshairs could well be Nexon, the developer of Dungeon Fighter. Another South Korean company in the docks is NetMarble, where Tencent already holds a roughly 17% stake.

Despite these still being rumors, the trajectory of Tencent in the past few years pushes the probability of the acquisitions towards being true. The company hasn’t yet responded to the reports though.

Ellen Royce
Ellen Royce
Ellen Royce is a writer, blogger, and gamer. Like many others, she thought games make people dull, but several years ago, everything changed when she learned more about the world of online gaming. She is writing about it to spread information about all the significant advantages games bring.
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