Tencent Video games, the world’s largest gaming firm (and China’s second greatest tech agency), has its fingers in quite a lot of pies. Within the gaming trade, it has investments in firms like Ubisoft, Activision Blizzard, and Epic. However in 2020, Tencent closed 300 % extra offers than it had the earlier 12 months—including a whopping 31 gaming firms to its listing of investments and acquisitions.
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This all comes courtesy of Niko Companions, the main market analysis and consulting agency for Asia’s huge gaming trade. In a latest weblog put up, the corporate outlined a number of of the most important market tendencies for the Asian video games market, however probably the most fascinating is Tencent’s aggressive funding into smaller gaming firms.
The listing of the 31 gaming firms Tencent invested in might be seen beneath, however it’s price noting that almost all of its investments are minor stakes in smaller Chinese language firms that do not have a lot of a worldwide presence.
The investments price noting, nonetheless, are ones like Tencent’s undisclosed minor stake in Japanese developer Platinum Video games (which occurred again in January 2020) adopted by its $148 million acquisition of Norwegian developer Funcom. Tencent additionally sunk $150 million of funding into Roblox in February, whereas in August it dropped an unlimited $1.5 billion to amass Leyou Know-how in August.
If Leyou Know-how does not ring a bell, they seem to be a Hong Kong-based holding firm that itself has its fingers in quite a lot of totally different pies. Here is what it’s essential to know:
- Leyou owns Digital Extremes, makers of Warframe (acquired them in 2014)
- Leyou owns Splash Injury, co-developers of Gears Techniques, Soiled Bomb, and different video games
- Leyou has a publishing settlement with Amazon for the Chinese language launch of Amazon’s upcoming Lord of the Rings MMO
- Leyou’s subsidiary Athlon Video games is a shareholder and publishing companion of LCG Leisure, which now owns the mental property of Telltale Video games after it went defunct.
Tencent’s acquisition of Leyou successfully means Tencent is now the proprietor of Digital Extremes, Splash Injury, and the mental property of Telltale Video games. The remaining of Tencent’s 2020 investments are principally in Chinese language gaming firms and platform holders, like Huya/Douyo, China’s largest livestreaming platform that was once rivals earlier than merging earlier this 12 months. Each firms have been backed by Tencent, and it now owns round 68 % of the merged firm.
It is quite a bit to maintain observe of and, because the Niko Companions report suggests, is because of “growing competitors within the video games area from massive tech companies similar to Bytedance and Alibaba, in addition to medium sized firms similar to Lilith and MiHoYo [the makers of Genshin Impact] which have succeeded in areas the place Tencent has seldom invested in.”
That is not to say Tencent is liable to shedding its spot on the throne because the world’s greatest gaming firm, however it’s fascinating to see which firms (and by extension their video games) Tencent is placing cash into.
In the event you’re interested by all the most important gaming firms that Tencent has invested in, now we have a complete listing. You can too try Niko Companions’ weblog put up for extra insights into the Chinese language gaming trade from 2020, or try the total listing of the acquisitions and investments it made final 12 months beneath.