Tencent "aggressively seeking" to buy more studios

They want more studios and they want them now

Tencent "aggressively seeking" to buy more studios

They want more studios and they want them now

Seems like Tencent, the Chinese giant wants to consolidate its leadership in the market as they don’t want to be left behind after the studio purchases made by Xbox, PlayStation and the recently announced investment from the Saudi Arabian government have been huge.

According to Reuters, Tencent has changed its acquisition strategy and is now "aggressively pursuing" the purchase of more studios. Over the years, the company has invested millions to buy a portion of prominent studios, such as FromSoftware, PlatinumGames, Epic Games, Ubisoft and Epic Games, just to name a few. The giant has also acquired the entirety of several companies, such as Riot Games, Turtle Rock, Funcom, among many others.

The strategy is more money!

The report also notes that the company’s new strategy involves injecting even more capital into its acquisition strategy, which means… more money.

In order to achieve this, one of its objectives would be to reduce its minor investments to focus on the complete acquisition of companies. In this way, it would address the industry’s limitations in China, as the restrictions imposed by the government have directly impacted its shares and business in general.

The report states that the company is particularly interested in foreign studios, especially those with a presence in Europe and are mainly looking for talented teams that are innovative and interested in growing independently. On the other hand, the company also plans to invest in more projects related to the metaverse even though that already has a good portion of Epic Games one of the main metaverse developing companies.

Tencent really wants to focus on majority stakes or outright purchases, however, we are not sure if just buying tons and tons of studios will help at all. What do you think of its upcoming inversion strategy? Will work out? Let us know in the comments below.

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