Tencent has consolidated its control over Supercell
It turns out that until October 21, Tencent did not formally own the consortium that had previously acquired Supercell. Now the situation has changed.
A little background
In 2016, a consortium led by Tencent was formed to purchase a majority stake in Supercell. The deal officially took place on June 21, 2016. 84% of the Finnish company went for $8.6 billion.
Then it was officially positioned that Supercell was acquiring Tencent. However, as it turned out the other day, everything was a little more complicated.
Consortium and Tencent
Although Tencent formed a consortium, it did not have a decisive vote in it. The Chinese giant managed only 50% of the merger, according to Pocket Gamer.
On October 21, Tencent signed a deal to acquire 44 thousand shares of the consortium for $40 million. Thus, Tencent increased its share in it to 51.2%.
As a result of the transaction, the consortium was officially absorbed and is now a division of the Chinese company. All of its financial results (i.e. Supercell results) will now be included in Tencent reports.
What are the consequences of the transaction?
The first and most obvious is the growth of Tencent’s quarterly revenue due to the addition of Supercell results.
Whether the Chinese will interfere in the affairs of the Finnish studio is an open question. As far as we know, Tencent, as a rule, does not interfere in the operation of its Western assets.
Recall that the company has shares in Epic Games, Glu Mobile, Activision Blizzard, and Riot Games belongs to the gaming giant entirely.
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