In recent years, Tencent has made many high-profile investments in overseas game companies, including major holdings in Epic Games and Ubisoft. These investments have given Tencent unparalleled influence over the global gaming industry and brought opportunities for further expansion abroad. Tencent adopts an investment strategy that leaves creative control to studios while obtaining profits and China publishing rights.
tencent as epic games’ largest shareholder
Tencent owns 40% of Epic Games’ shares after a 2012 investment, making it the largest shareholder. This investment enabled Epic Games to pivot its business model to games as a service model that focuses on long-term player engagement. Hits like Fortnite would not be possible without Tencent’s backing. In return, Tencent gets a share of Epic Games’ profits and publishing rights in China.
tencent coming to ubisoft’s rescue against vivendi
When Vivendi attempted hostile takeover of Ubisoft, Tencent rushed to Ubisoft’s rescue by acquiring 5% shares in 2018. This thwarted Vivendi’s ambitions and won Tencent distribution rights for Ubisoft games in China. Ubisoft was saved from losing its creative independence under Vivendi.
hands-off approach to gain trust
Key to Tencent’s success overseas is its hands-off approach that leaves creative control with studios. This builds trust and dispels fears about Chinese control. Even with minority stakes, Tencent provides games reach in the lucrative Chinese market. Its investments bring growth, not interference.
Through strategic investments, Tencent has gained significant influence over Western gaming industry giants like Epic Games and Ubisoft while positioning itself for further global expansion.