Tencent Holdings is buying a 20 per cent stake in video games developer Marvelous, giving the Japanese company capital to develop its game franchises and bolstering the content the Chinese internet giant can offer users.
Shenzhen-based Tencent, which runs the world’s largest video games business by revenue, will spend about 7 billion yen (US$65 million), through affiliate Image Frame Investment, to buy stock in the Japanese games maker.
Marvelous will sell 8.62 million new shares for 576 yen apiece, while shareholders Amuse Capital and Nakayama Hayao will sell 2.83 million and 708,600 shares respectively at the same price.
The Japanese firm plans to use the money to build out its existing game franchises and launch new ones over the next three years. Its current titles include Story of Seasons and Deamon X Machina.
Tencent has been one of China’s most aggressive overseas investors, backing everything from technology start-ups to coffee-and-doughnuts chain Tim Hortons. Among game developers, Tencent has taken stakes in Epic Games, the North Carolina-based company behind Fortnite, and South Korean studio Bluehole, which fostered PlayerUnknown’s Battlegrounds.