Business / Technology

Tencent may acquire stake in game developer Supercell

By Paul Welitzkin (China Daily) Updated: 2016-06-17 08:10

Tencent may acquire stake in game developer Supercell

The logo of Tencent [Photo/IC]

Tencent Holdings Ltd is reportedly nearing a multibillion deal to acquire Supercell Oy, the Finnish maker of the popular Clash of Clans mobile game.

Tony Lam, a partner at mobile game design consultant Adrian Crook & Associates in Vancouver, British Columbia, said the deal would make the Chinese internet giant a powerhouse in the mobile game industry.

Citing people familiar with the matter, The Wall Street Journal reported on Wednesday that Tencent is in talks with SoftBank Group Corp to buy the Japanese company's majority stake in Supercell and is in discussions with several financial investors, including Hillhouse Capital Group, to join in the purchase as co-investors.

The Journal said the deal could value Supercell at more than $9 billion. It reported in May that Tencent was looking at Supercell.

Lam said a Supercell acquisition by Tencent would place the Chinese firm in the top tier of mobile game providers.

"This is in line with their gaming strategy of acquiring the top players in large genres ... like their acquisition of majority shares of Riot Games and League of Legends in 2011," Lam said.

Games are one of Tencent's biggest business areas. About half of the 32 billion yuan ($4.88 billion) revenue in the first quarter came from online games.

Six members of the Finnish games industry founded Helsinki-based Supercell in 2010 and it has launched only four titles-Hay Day, Clash of Clans, Boom Beach and Clash Royale.

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