Tencent is reportedly refocusing on ‘aggressively seeking’ full games company acquisitions VGC Open main menu Lengthy FIFA players MultiVersus characters Disney Dreamlight recipe list First for Video Game News Follow VGC Tencent is reportedly refocusing on ‘ aggressively seeking’ full games company acquisitionsThe Chinese giant reportedly wants to offset uncertainty at home Video Game News 1st Oct 2022 / 12:28 pm Posted by Andy RobinsonChinese gaming giant Tencent is reportedly switching its acquisition strategy and “aggressively seeking” to own majority or controlling stakes in overseas game companies. That’s according to a new report from Reuters, which claims that the conglomerate is putting more focus on buying companies outright, following years of investing in minority stakes, as it attempts to offset slowing growth at home in China. Tencent, which is the world’s biggest video games company by revenue, has already invested in more than 800 companies. That includes a 40% stake in Epic Games and holds shares in Activision Blizzard, Ubisoft, PUBG Studios parent company Krafton, PlatinumGames, FromSoftware and Marvelous Inc. New Fatal Fury / Garou - teaser trailerSubscribe to VGC on YouTube However, Tencent has made fewer full acquisitions. Currently, it owns 100% of developers such as Funcom, Riot Games, Sumo, Turtle Rock, Digital Extremes and Splash Damage. According to Reuters’ sources, the tech giant is now aggressively seeking to own majority or controlling stakes in overseas targets, “notably in Europe”. The shift in strategy is reportedly due to the company’s newfound reliance on global markets for future growth, as China strengthens regulations at home. Tencent told Reuters the company had been investing abroad for a long time, “long before any new regulations” in China. It looks for “innovative companies with talented management teams” and gives them room to grow independently, the company said. Tencent confirmed during an earnings call in August that it would remain active in acquiring game studios overseas. “In terms of the game business, our strategy is … to focus on developing our capabilities, especially in the international market,” it said. “We will continue to be very active in terms of acquiring new game studios outside China.” Further reading 13 Saudi Arabia says it will spend $13bn to acquire ‘ a leading game publisher’ The country’s Savvy Games Group claims it will invest a further $37.8 billion in the games industryM&A activity in the games industry hit a record $85 billion in 2021 and has been forecast to reach $150 billion this year, with huge deals such as Microsoft’s acquisition of Activision Blizzard and Take-Two’s buyout of Zynga having already been announced. Earlier this week, Saudi Arabia’s state investment fund announced it will invest a further $37.8 billion in the games industry acquisitions, including around $13 billion to acquire “a leading game publisher”. 16 Comments Related VGC Content Microsoft generated $2 9bn from Xbox Game Pass last year regulatory docs suggest23 hours ago Rivals asked for feedback on Xbox’ s Activision deal in leaked EU questionnaire4 days ago Brazilian regulator says Sony could compete without Call of Duty like Nintendo does4 days ago The FTC could reportedly rule on Microsoft’ s Activision deal by late November5 days ago Popular Now on VGC1 Harley Quinn voice actor criticises Chris Pratt Mario casting ‘ It should be Charles’ 2 Phil Spencer could be teasing Xbox s game streaming device in a new office photo3 Modern Warfare 2 will seemingly require a phone number like Overwatch 24 Interview How PlatinumGames is betting on Nintendo expertise to shape its future5 Platinum thinks hiring of Nintendo veteran can take the companies relationship to the next level More Video Game News61 PlayStation boss Jim Ryan ‘ flew to Brussels’ to voice concerns to EU over Xbox’ s Activision dealSony has publicly stated its concern over Call of Duty's future under Microsoft1 week ago61 Comments1 US PlayStation shipments were reportedly up 400% last monthPS5 supply appears to be increasing as Christmas approaches1 hour ago1 Comment Overwatch 2 servers down for some as Blizzard removes two heroes temporarilyThe game's rocky launch has caused much fan frustration2 hours ago9 Ubisoft Bungie and IO confirm Stadia salvage plansThe developers say they’re exploring transferring player progress from their titles1 week ago9 CommentsBy commenting on this article you agree to adhere to VGC’s community guidelines. Notice: To display comments please allow the use of Functional Cookies in Cookie Preferences.