Tencent Dominates Game Deals with US$22 Billion in Last 12 Months

By Muhammad Bilal Syahrir

In games deal making there’s Tencent, then there’s everyone else.

Tencent dominates game deals as it galloped US$22 billion for the past year. This includes investment and mergers and acquisitions (M&A).

Tencent continues to prove to be the number one gaming company in the world. According to a report from Digi-Capital, Tencent participated in over $4 of every $10 invested in games companies worldwide for the past year.

It also was a part of either buying or selling of all games M&A activities in more than three quarters. 

The company’s most notable transaction would be its US$632 million and US$462 million investments in games streaming service Douyu and Huya. Another notable one would be its US$476 million investment in game developer Shanda Games (developers of Dragon Nest Mobile).

Not just that, but Tencent also invested US$130 million into Kakao Games and US$72 million into Ourpalm. These two companies are companies focused on mobile gaming.

Tencent Dominates Game Deals

The report also claims that game investments in the last 12 months generated a total of US$ 4.2 billion. This broke record of total investments from previous years.

Most of the money was allocated for game techs and platform companies rather than game developers.

Another interesting fact is that for five consecutive years, mobile games were dominant. However, the first quarter of 2018 for the first time saw dominant stats in MMO/MOBA games investment. This also applies to AR/VR and eSports over the last 12 months.

Games IPOs were also in the highlight of the report. But, compared to other categories, this segment might see a decrease this year. The year 2017, on the other hand, had a decent year where Netmarble Games, Sea Limited (Garena), Razer, and Rovio’s IPO had a high total in terms of deals.

Tencent Doubles Its Profit, Thanks to Mobile Games

Chinese publisher Tencent doubles its profit in just three months, ending on December 31st, 2017. One of the causes is its mobile gaming contribution. 

One thing we can conclude from the report is that Tencent is still, and will still be the market leader in games for years to come. What do you think?

Top image source: ABC News. Edited by Devi




About Writer

My main mission: Making Indonesian Game Industry big!