Tencent Reportedly Plans To Buy More Global Studios Outright

Amid slowing growth in its native China, gaming giant Tencent reportedly plans to buy majority shares in notable gaming studios.

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Tencent is one of the biggest names in gaming, and the company is well-known for its strategy of buying slices or non-majority shares of other gaming studios, particularly global ones. However, according to a new report from Reuters, it seems that Tencent will now move to buy "majority or even controlling stakes" in gaming studios, especially those in Europe.

The report states that Tencent is adopting this new approach after several years of regulatory struggles in its native China, where a fall in game approvals led to an unexpected shrinking of revenue. These "clampdowns" in its native region have caused the company's brass to look more globally for opportunities. In a recent earnings call, Tencent's chief strategy officer James Mitchell reiterated this strategy. "We will continue to be very active in terms of acquiring new game studios outside China," he said in part.

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Given that China's regulators have displayed a skepticism (or even outright hostility) towards video games in recent years, it's not exactly surprising that Tencent would try to pursue acquisitions elsewhere. The four anonymous source for the report further stated that Tencent is particularly interested in studios that are related to the "so-called metaverse."

Tencent recently upped its ownership stake in Ubisoft to 11%, making it the Assassin's Creed publisher's single largest shareholder. Tencent bought a 16.25% stake in Elden Ring developer FromSoftware in August. Over the past year, the company has also purchased several studios outright, including Sumo Digital and Subway Surfer developer Sybo Games.

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