After months of speculations, Tencent and its partners confirmed their acquisition of the Finland-based gaming company Supercell from Softbank. Tencent paid $8.6 billion for an 84.3 percent stake in the studio best known for game titles like Clash of Clans and Clash Royale.
This made Supercell valued at $10.2 billion, or nearly a double its valuation a year ago before being acquired by Softbank.
Tencent on its own is popular in China. Beside its WeChat messaging app, the company also owns Riot Games which developed League of Legends, a small share at Epic Game that created Gears of War, and a stake in Activision Blizzard that created World of Warcraft, Diablo and Candy Crush Saga. While Tencent owns many share on other gaming company, the Supercell acquisition is its biggest acquisition to date.
This reinforces the company's position as the world's biggest videogame publisher by revenue. It also highlights its ambitions beyond China’s borders.
Supercell founder Ilkka Paananen described the deal as "the world's worst kept secret." With the company now under Tencent, Supercell is up to its "next chapter."
Tencent while having less exposure on the West, has a hefty market capitalization with $207 billion. Online games accounted for more than half of the company's $15 billion in revenue in 2015.