Chinese gaming giant Tencent is changing its acquisition strategy and is making a big push to own a majority stake or controlling interest in overseas gaming companies, Reuters reports. Previously Tencent invested in overseas companies by generally buying small stakes, but now prefers to buy them all, a move to offset slowing growth in China.
Tencent is currently the world’s highest-grossing gaming company with more than 800 investments in companies, which includes a 40 percent holding in Epic Game and stakes in Activision Blizzard, Ubisoft, PUBG Studios parent company Krafton, Platinum, FromSoftware and Marvelous, among others.
Developers currently wholly owned by Tencent include Funcom, Fist, Sumo, Turtle Rock, Digital Extremes and Splash Damage.
Citing sources, Reuters said Tencent is making a big push to own majority or controlling stakes in overseas game companies, especially in Europe. This shift in strategy shows Tencent’s increasing reliance on overseas markets for future growth.
In response to the Reuters report, Tencent responded that the company’s overseas investments have been ongoing for a long time and that the strategy predates any new regulations. Tencent added that it is looking for “innovative companies with good management teams” and will provide room for autonomous growth.
