Tencent changing strategy to acquire more majority deals

The tech company is hoping to secure future growth by expanding its gaming assets

Tencent changing strategy to acquire more majority deals

According to a report from Reuters, the Chinese gaming giant Tencent is switching up its acquisition strategy and focusing on buying majority or controlling stakes in overseas video game companies.

Tencent has seen its growth at home in China slow down, and therefore is looking to expand its reach globally. According to four anonymous sources that have direct knowledge of the matter, this new shift will see Tencent actively seeking to own majority stakes in companies overseas with a particular interest in gaming assets in Europe. One of the sources also stated that Tencent will be hoping to acquire global assets related to the metaverse.

Over the years Tencent has invested in many companies, often acting as a silent partner. They have stakes in Ubisoft and there have been rumours that they wish to expand upon this stake. They also hold shares in Activision Blizzard and have a 40% stake in Epic Games.

Thinking forward

Although this news points to the company looking to claim majority shares more frequently, it has already acted on this strategy in the past. Originally Tencent was the publishing partner to video game developer Riot Games, and they expanded on this massively by becoming the majority stakeholder of the company, and eventually going on to take full control. Tencent also has a majority stake in Grinding Gear Games.

Tencent has felt the impact of tighter regulations in China which also resulted in the company laying off over 5000 staff members earlier in the year. This new strategy is a logical step in looking beyond China to expand its future growth and revenue, ensuring they secure a strong portfolio of games.

Tencent featured in our top 50 game makers list this year, and recently former Sony Interactive Entertainment president Shawn Layden announced joining Tencent Games to act as a strategic advisor.

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