China’s Shanda Games confirms $474m investment from Tencent

REUTERS/Aly Song

China’s Tencent Holdings Ltd will invest 3 billion yuan ($474 million) in smaller peer Shanda Games, the target firm said in a statement to Reuters on Friday, a move that will boost Tencent’s lead in the local video game market.

The Chinese market is the world’s largest, registering an estimated $32.5 billion in sales last year, according to data from gaming consultancy Newzoo. In second place is NASDAQ-listed NetEase Inc.

Shanda owns popular titles “Dragon Nest” and “The World of Legend”, and had been the main force in Chinese gaming before slipping behind local rivals including Tencent over the past decade.

The investment comes as Tencent gears up to formally launch global hit game “PlayerUnknown’s Battlegrounds” in China, after saying last year it would give the game a socialist make-over to meet Chinese rules governing digital content.

Tencent also owns significant stakes in U.S. game developers Riot Games Inc, Epic Games Inc and Activision Blizzard Inc. In 2016, Tencent bought the majority of Finland-based “Clash of Clans” mobile game maker Supercell for $8.6 billion.

Shanda said Tencent’s investment would help “bolster” Shanda’s core business. It also said the two firms would collaborate on current businesses, including several of Shanda’s popular games.

Tencent confirmed the investment in a statement, adding that Shanda was “one of the most widely recognized online game companies in China” and that its strategic investment would boost the smaller firm’s growth prospects.

Tencent is valued at over $510 billion and has seen its share price boom on the back of strong demand for its mobile games.

Also Read:

Tencent acquires stake in online games developer Shanda Games

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.