Tencent Is Only Now 'Aggressively Seeking' Game Studio Acquisitions
So, you know how Tencent has become the biggest video games company in the world by aggressively acquiring part of any video game entity it can get its hands on, if not entirely? Well, it seems that the top bosses don't think that they were all that aggressive, and will only now shift to a more acquisition-centric approach.
You read that correctly, according to a report by Reuters, changing up its mergers and acquisitions strategy to focus on acquiring overseas companies in order to balance out the slow growth in China, due to the country's strict laws. News about Tencent acquiring another company, in part or fully, doesn't come as a surprise anymore, given its reputation over the past few years. But what is surprising is that the company will only now switch to an aggressive strategy.
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So if you think Tencent is aggressively buying off every studio right now, the future looks a bit more worrying. "Tencent Holding Ltd (0700.HK) has for years invested in hundreds of up-and-coming businesses, mainly in the onshore market. It has typically acquired minority stakes and stayed invested as a passive financial investor," says the report. "However, it is now aggressively seeking to own majority or even controlling stakes in overseas targets, notably in gaming assets in Europe, the four people with direct knowledge of the matter told Reuters.
"The shift comes as the world's number one gaming firm by revenue is counting on global markets for its future growth, which requires a strong portfolio of chart-topping games," said Reuters' sources.
The report goes on to say that besides gaming related companies, Tencent is also looking toward Europe in
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