Tencent Strengthens International Gaming Presence by Acquiring $8.6 Billion Majority Stake in Supercell
China's largest gaming company Tencent Holdings Ltd. has acquired a majority stake worth $8.6 billion in Supercell, which is a Finnish gaming company.
Tencent bought the stake from the Japanese company SoftBank Group Corp. SoftBank Group is at present making an effort to shed its debt volume. Supercell is the company which is most popular for its game, Clash of Clans.
The deal will give Tencent an 84 percent stake in Supercell. The Finnish gaming company is valued close to $10.2 billion according to the agreement. So far, it is the largest foreign acquisition for Tencent.
Tencent, which is listed on the Hong Kong exchange, has invested in several gaming companies like in Riot Games stake for $231 million, and Epic Games stake worth $330 million and also a share in Glu Mobile.
The latest investment will help the Chinese gaming company to strengthen its position in the international markets. Reportedly Tencent has approximately three hundred million users.
President of Tencent, Martin Lau, said, "We are very bullish on online gaming. We would like to get exposure to this market."
Supercell will also gain by entering into the user base of Tencent. Supercell's chief executive Ilkka Paananen said "One of the big things that drives us is trying to reach as many players as possible."
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