18.6 C
New York
Saturday, June 15, 2024

Tencent shifts focus to majority deals, overseas gaming assets for growth

The Chinese gaming giant is again focusing on acquiring western game studios wholely after a slowdown at home

As per a new report by Reuters, the Chinese Gaming Giant — Tencent is refocusing to acquire International gaming companies outright after the business of the gaming conglomerate slowed down significantly at home. 

Tencent is bar far the largest video gaming company by revenue and has invested in over 800 companies worldwide which includes Riot (100%), Epic Games (40%), Ubisoft (5%), Activision-Blizzard (5%), Grinding Gear Games (80%), Supercell (84%), and many more.

As per sources of Reuters, the company is again “aggressively seeking” to own controlling or majority stakes in gaming companies, “notably in Europe”. The sudden shift in its strategy comes after the company came under China’s regulatory lens for its business practices and monopoly at home. Since new regulations in China are hitting the business of the company hard, it looks like the company has found a new reliance on global markets for its future growth and revenue streams. 

Tencent told Reuters that the company “had been investing abroad for a long time, long before any new regulations” in China. The company added that it looks for “innovative companies with talented management teams” and gives them “room to grow independently”

During its August earnings call, Tencent confirmed its plans to remain active in acquiring game studios overseas. 

“In terms of the game business, our strategy is … to focus on developing our capabilities, especially in the international market. We will continue to be very active in terms of acquiring new game studios outside China,” said Tencent during its earnings call in August.

- Advertisement -

Esports News