Chinese multinational conglomerate Tencent is looking to expand into overseas gaming companies, according to Reuters.
Parent company to League of Legends, PUBG, Fortnite, and countless others, Tencent has spent considerable resources in acquiring both up-and-coming and already popularized titles. Typically, Tencent has only acted as minority shareholders and passive financial investors, though reportedly the conglomerate is changing up its strategy. Tencent may now look to own majority or controlling stakes over its future, predominately overseas assets.
After two years of supposedly harsh regulatory lockdowns, Tencent, like many other Chinese tech giants, faced significant pushback. Tencent’s plan to seek investments abroad, however, purportedly came far before any potentially hindering regulations, according to Tencent in a statement to Reuters. Tencent claims it is now looking for “innovative companies with talented management teams,” which Reuters sources claim could involve Metaverse properties along with other currently unknown targets.
Tencent’s reported push into overseas gaming markets comes at a time wherein some of the largest companies in the space have also sought to snatch up gaming assets. Microsoft’s acquisition of Activision and Sony’s takeover of Bungie are only two of many examples.
In an additional statement to Reuters, Tencent chief strategy officer James Mitchell confirmed the company’s plan to actively seek out game studios abroad.
“In terms of the game business, our strategy is to focus on developing our capabilities, especially in the international market,” Mitchell said. “We will continue to be very active in terms of acquiring new game studios outside China.”
Though it is unclear exactly what studios Tencent may already have its eye on, Tencent very well may be expanding into further gaming markets in the near future.