Chinese tech giant Tencent has made a strategic investment of around $71.7 million in fellow Chinese game developer Ourpalm.
The deal means that Tencent now owns 55.4 million shares in Ourpalm, which equates to 2% of the company. Shares were sold at 8.84 yuan each, for a total of 489.7 million yuan ($71.7 million).
Tencent's investment will be used to strength the companies tie with the developer. Ourpalm has already worked with Tencent to publish titles such as The King of Fighters 98 Ultimate Online and MU Miracle in China.
A strong force
"Ourpalm is a strong force in the games market within China. The company has developed many successful games and owns stakes in various game developers," Niko Partners analyst Daniel Ahmad told PocketGamer.biz.
"This investment will allow Tencent and Ourpalm to strengthen their co-operation and deepen their relationship."
Tencent is rumoured to be eyeing up Rovio for a potential acquisition in a deal that values the Finnish studio at $3 billion. Rovio has not made any agreements on this front, and may instead IPO at the end of 2017.
