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how Tencent intends to dominate the entire industry

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The Chinese giant Tencent is not known to be an altar boy and intends to prove it by gradually buying up all the companies it wants.

Video game fans know that the industry that governs this entertainment is one of the most prolific in the world. With each studio takeover, transactions run into the billions and the proof is with Microsoft’s proposal for Activision Blizzard, which is around 70 billion dollars. And one of the firms that knows the most about it is Tencent.

Based in China, the company operates in various sectors, including technology and video games. Over the past few years, Tencent has gradually acquired a large number of studios, recently becoming the firm with the most investments on the clock, even above Microsoft or Sony, which nevertheless carry out acquisitions at the chain. Only to establish its hegemony, it does not seem to be enough. While Tencent has long relied on Chinese companies to gain traction, the group is increasingly extending its influence beyond its own borders.

The Tencent empire is on the way

According Reuters, the firm intends to go much further geographically but also in its strategy. If it were content to acquire certain studios in full (Riot Games, Sumo Digital, etc.) and buy minority shares in certain others (FromSoftware, Epic Games, Krafton, etc.), Reuters confirms that the group’s approach will become more aggressive. This follows in particular the takeover of Ubisoft up to 49.9% which should have serious consequences in the coming years.

This fate, the firm therefore reserves it for many other studios while Reuters explains that it seeks “aggressively to hold majority or even controlling stakes in foreign targets. […] The move comes as the world’s number one video game company by revenue relies on global markets for its future growth, which requires a strong portfolio of successful games.

Tencent’s specialty is mobile games. Porting is therefore an area in which the company excels and it is in particular the treatment that awaits the franchises of Ubisoft. However, nothing says that in the future it will not diversify its activities to attract PC and/or console players. Acquiring as many studios as possible in this upstream field of action could allow Tencent to stand out when the time comes.

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