Chinese investment holding company Tencent has just expanded its territory in in the Internet world after it bought the majority stake on "Clash of Clans" developer "Supercell" for a staggering amount of $8.6B USD. According to Reuters, the move just sealed Tencent's position in the gaming world, also expanding its coverage after they previously acquired Riot Games and Epic Games.
While Tencent may seem to have acquired the best of Supercell, the latter in the other hand will be able to get the type of backing they need in order to develop more games online. Tencent now currently hold 84.3 percent of Supercell and puts the partnership on the record of one of the biggest gaming deals ever made.
Despite the acquisition, Supercell will still be in control on most of its internal transactions specifically their operational independence. Also, Supercell will not be obliged to leave Finland and retain their headquarters there.
CEO Ilkka Paananen said "This deal enables us to keep Supercell privately held. That is a better match with our small size and unique culture than being a public company where our concern would be the pressure from financial markets to think short term."
Supercell has been the game developer responsible in bringing you "Clash of Clans," "Boom Beach" and "Hay Day." Financial analyst Richard Windsor also cited Supercell's massive "Clash of Clans" game saying "Clash of Clans has been constantly in the top 5 grossing apps ... for a very long time, making this a great platform (for Tencent) from which to begin building a position in developed markets."
The Venture Beat mentioned how Tencent is struggling to make a statement outside their China market and it seems like the investment on Supercell is a viable idea. With several different mobile games connected to game developers where Tencent holds a share, it won't be long before they get the recognition they want outside China.
