Shulou(Shulou.com)11/24 Report--

CTOnews.com, Oct. 1, Reuters quoted several sources as saying that Tencent is adjusting its M & A strategy and will devote more energy to acquiring a majority stake in overseas gaming companies, hoping to offset China's domestic growth slowdown through global expansion.

Four sources said that Tencent is currently actively seeking equity or even controlling stakes in overseas target companies, especially European game companies. Sources said that in addition to the core gaming area, Tencent is also looking to acquire global assets, especially those related to meta-universe in Europe. They point out that this shift is due to the fact that Tencent's revenue is dependent on the future growth of the global market, and they need a strong lineup of excellent game products.

In response, Tencent said its overseas investment has been going on for a long time, and this strategy "predates any new regulations in China". Tencent said it was looking for "innovative companies with excellent management teams" and gave them room to develop independently, but did not provide more details.

It is worth mentioning that James Mitchell, Tencent's chief strategy officer and senior executive vice president of the group, said in August that Tencent would continue to actively acquire new overseas game studios. "as far as the game business is concerned, our strategy is. Focus on developing capabilities, especially in the international market. We will continue to actively acquire new game studios outside China."

CTOnews.com learned that Tencent has invested in a number of overseas game developers and development studios, including Ubisoft Entertainment, the largest game developer in France, and FromSoftware, the developer of the Elden Ring.

Tencent's game revenue in the second quarter of this year was 42.5 billion yuan. Among them, the game revenue in the local market is 31.8 billion yuan, while that in the international market is 10.7 billion yuan, accounting for about 25%. There is still a long way to go relative to the ultimate goal of "sharing half of the income at home and abroad".

"further expansion of territory, Tencent wholly-owned acquisition of Canadian Inflexion Games Studios"

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