The Chinese tech giant Tencent is all set to become the biggest shareholder in the video games developer Marvelous, which is based in Japan. Tencent is reportedly buying 65million stake in the Japanese video game developer firm to enhance its video game development and provide newer gaming titles.
Tencent to buy 65 Million USD worth stake in Marvelous
The Chinese tech giant has a significant presence on the internet, and by buying a substantial stake in the video game development company, it can enhance its content across countries. The Japanese video game company, in turn, benefits with considerable capital investment to develop its games.
Largest overseas investor in China
Tencent, based out in Shenzhen China, boasts of the most significant video games business in terms of revenue. It will spend around 65 Million USD to procure stakes in Marvelous.
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Tencent is amongst the most active Chinese investors that procure stocks overseas. Tencent has procured games companies earlier, like Epic Games, a company that made highly popular Fortnite and South Korean studio Bluehole.
Marvelous to sell out shares
Marvelous is set to sell out 8.62 million shares for the prize of 576 per yen. Amuse capital, and Nakayama Hayao, the shareholders of the company, will offer 2.83 Million and 708,600 shares respectively for sale at a price mentioned above.
Enhancing the gaming franchise
Japanese Gaming giant will use the money to develop its already present game franchises and launch new games in the coming years.
Investment to help Marvelous in pandemic unrest
“Tencent’s reason for the investment is probably to learn how to make console games from Japanese companies, one of the last frontiers for the Chinese tech company’s game business,” said Hideki Yasuda, Ace Research Institute analyst. He added, “The investment will help Marvelous ride through the period of global economic uncertainty, and release more of its domestically popular titles to the Western market.”
Gaming companies to step up their efforts
Marvelous expects the gaming markets to evolve as the pandemic and 5G mobile internet helps to accelerate the changes in the video gaming industry. Gamers seek more enhancements and more titles to keep them engaged. The increased demands pose the gaming development companies to heighten their efforts and offer enhanced gaming entertainment.