Former Chinese online games market leader gets investment from Tencent
The deal marks the latest games-related acquisition made by Tencent after its takeover of Finnish mobile game developer Supercell in 2016.
Tencent Holdings has bought an undisclosed stake in privately held online video game developer Shanda Games, an acquisition that would further expand the internet company’s pipeline of content for the booming global games market.
The transaction, which a Shanda Games spokesman confirmed on Wednesday, marked the latest initiative by Tencent to bolster its position as the world’s largest games company by revenue, following its US$8.6 billion takeover of Finnish mobile game developer Supercell in 2016.
Based in Shanghai, Shanda Games was an early leader in China’s online games market, with hits such as fantasy online role-playing game The World of Legend.
“It is part of Tencent’s strategy to convert classic, popular PC-based titles into mobile games, which is what this Shanda Games deal may represent,” said Karen Chan, an equity analyst at investment bank Jefferies.
The Shanda Games spokesman declined to provide details about the amount of Tencent’s investment, the size of its stake or when the deal was made.