Chinese internet giant Tencent has bought a 28 percent stake in South Korean mobile gaming firm CJ Games for a reported $500 million.
The purchase will help Tencent - #12 on our Pocket Gamer list of Top 50 developers - expand its profitable online and mobile games business while simultaneously giving it a foothold in the lucrative Korean mobile market.
Conversely, the deal also gives CJ Games a vital foothold in the expansive Chinese mobile market while making global publishing for the two outfits far more viable in the future.
Eyes on the prize
Tencent's half-billion buy-in makes it the third-largest investor in CJ Games behind Bang JH and CJ E&M Corp - which, incidentally, earned the #9 spot on our list of Top 50 developers this year.
Speaking on the deal, Tencent's president Martin Lau stressed the mutual benefits for both CJ Games and Tencent.
"Our partnership combines CJ Games' unrivalled game development skills and mobile game line-up, together with Tencent's strong game publishing and operation capabilities in China," Lau said in a press release.
News of Tencent's $500 million buy-in to CJ Games follows the announcement of the Tencent Mobile Game Platform, an initiative which will combine its popular QQ messaging channel with the massively popular WeChat MMS.
Recently, Tencent also disclosed that mobile gaming generated $100 million during Q4 2013.