Tencent Further Strengthens Its Gaming Portfolio
The technology mammoth, Tencent, known for its aggressive pace of investment, and its penetration into the gaming industry has acquired a further stake in mobile developer Supercell.
Already the world’s largest gaming company and one of the most valuable technology companies, the Chinese multinational owns or controls hundreds of subsidiaries and associates around the globe.
Tencent completely owns League of Legends creator Riot Games, has a 40% stake in Fortnite’s creator Epic Games, and has investments in Ubisoft and Activision. It even has a small stake in PUBG’s Krafton Game Union.
Now a majority share of the consortium that has an 80% stake in Clash Royale’s Supercell
The firm which delivered China’s most widely used messaging platform QQ, has acquired 44,000 more shares in a consortium which indirectly holds an 81.4% stake in Finnish studio Supercell. According to Esports Observer, CX Tech and a filing to the Hong Kong Stock Exchange, the purchase was via a $40 million-dollar convertible bond. It puts Tencent with a majority share in Luxembourg Société Anonyme at 51.2%, instead of the previous 50%, making the consortium another subsidiary of Tencent.
The European consortium was created in 2016 to acquire Supercell, the company behind Clash Royale, Clash of Clans, and Brawl Stars. All three games are major eSports titles with massive events coming up over the rest of 2019.
As per Forbes and Sensor Tower, Clash of Clans was earning $1.5 million per day in 2018 but this was down from $5.5 million per day in 2015. Supercell’s profits dipped in 2018. But Tencent’s acquisition still gives it an even greater investment is some of the highest revenue-earning games in the eSports and gaming industry. Tencent’s own mobile game, Honour of Kings, reportedly generated $1.3 billion in revenue.
The upcoming events for Supercell should see it end the year on a high. The Clash of Clans World Championship with $1 million in prizes happens this weekend at ESL One Hamburg. Take a look at the playoffs predictions and favourites here.
Then, November will see Brawl Stars’ $250,000 world championship and the Clash Royal League World Final could happen before 2019 is out.