Tencent has grown to become the world’s largest video game company by aggressively buying shares in the video game industry and buying entire companies dedicated to the video game industry. Senior executives don’t think they’ve been that aggressive and seem to be looking to move into more existing markets to make a profit.
The company is shifting its mergers and acquisitions strategy to focus on acquiring companies outside of China to combat slowing growth in China caused by China’s tougher regulations, Reuters reports. Reports of a partial or full acquisition of another company by Tencent are no longer surprising given the business’s track record over the past few years. The company’s decision to adopt a more aggressive stance comes as a surprise.
Given that Tencent is now aggressively buying all studios, the future prospects are alarming. Over the years, Tencent Holding Ltd (0700. HK) has funded hundreds of startups, primarily in the domestic market. According to the report, in most cases they have only purchased a small number of holdings and maintain passive financial investments. However, according to four of his people who have spoken directly to Reuters on the topic, Reuters is now actively seeking majority or control of global targets, particularly in European gaming his business.
The move comes as the world’s largest gaming company plans to expand into new international markets, according to Reuters sources. This strategy requires the company to have a steady stream of successful titles.
Tencent is said to be interested not only in acquiring European gaming companies, but also in promising Metaverse-related businesses. A Tencent representative told Reuters the company was investing in foreign companies even before the Chinese government enacted the new law. We actively seek businesses with original ideas and strong management skills, waiting for them to prosper.
