Business, Internet, Software

Tencent's Supercell Buy Is Huge Overseas Tech Push For A Chinese Company

Tencent Holdings Limited confirmed that the company will acquire an 84.3% stake in Supercell for USD8.6 billion, including a 73% stake from Softbank and 11.3% stake from Supercell's employee shareholders and former employee shareholders.

After the acquisition, Supercell's existing executive team will maintain independent operations and the company will continue to be headquartered in Finland.

Founded in Finland in 2010, Supercell is a well-known gaming company in the country. It developed several popular mobile games, including Clash of Clans, Boom Beach, Hay Day, and Clash Royale. By March 7, 2016, Supercell had over 100 million daily active players and it is reportedly the mobile game company with the largest revenue in the world for two consecutive years.

This deal is reportedly the largest acquisition in the history of the global gaming industry. After its full acquisition of Riot Games in 2015, Tencent's new acquisition of Supercell will further enhance its leading position in the global gaming industry.

The acquisition is expected to reinforce Tencent's international development of its gaming businesses. In return, taking advantage of Tencent's strong mobile game distribution ability, Supercell may further expand into the Chinese market.

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