[Rumor] Tencent gathering funds to takeover a major gaming company.

[Levent]

Summary

According to TweakTown's source [Behind a paywall], Chinese giant Tencent, is looking to expand its gaming network with a major gaming company. TT indicates that this could be done via hostile takeover of Take-Two or a deal with EA but article also states that in reality it is expected to be South Korean company, NetMarble. 

Quotes

Quote

SeekingAlpha:

Tencent is considering raising several billion dollars in a "club" loan deal and is holding talks with lending banks as the company looks at a potential acquisition of a gaming business.

 

Tweaktown:

The more likely scenario sees Tencent buying a South Korean developer, sources say. Targets include NetMarble, South Korea's biggest mobile game maker, and Nexon, the developer behind Dungeon Fighter. Tencent also has exclusive rights to publish Nexon's Dungeon Fighter in China, showing the giant has existing connections with both firms.

 

My thoughts

Due to recent surges in stock prices of Tencent, I wouldnt be surprised if they are attempting to capitalize on their stock prices. However I dont see a hostile takeover of EA or Take-Two possible due to sheer profitability of those companies. Plus due to current political atmosphere I would expect getting a loan for a few billion dollars for a US based company would be hard for them.

 

My first "news" article in 8 years. See y'all in 8 years.

Sources

https://www.tweaktown.com/news/77498/report-tencent-raising-billions-to-buy-ea-take-two-or-others/index.html

https://seekingalpha.com/news/3653045-tencent-considering-debt-financing-for-a-possible-gaming-deal-tmt-finance-says

[PlayStation 2]

Neither EA nor T2 would ever allow themselves to be purchased up by anyone else for various reasons. I very strongly suspect that they'd go in and swoop up a South Korean gaming company, though.

[Senzelian]

I wish they would buy EA or Ubisoft. Maybe they would stop producing garbage then.

[Moonzy]

What if tencent bought steam

[Radium_Angel]

9 minutes ago, PlayStation 2 said:

Neither EA nor T2 would ever allow themselves to be purchased up by anyone else for various reasons. I very strongly suspect that they'd go in and swoop up a South Korean gaming company, though.

Every man has a price.

It may be steep, but it exists.

[porina]

Anything that stops MS from buying up gaming companies is a good thing.

[sof006]

19 minutes ago, Senzelian said:

I wish they would buy EA or Ubisoft. Maybe they would stop producing garbage then.

They'd likely produce more garbage

[TOMPPIX]

16 minutes ago, Moonzy said:

What if tencent bought steam

Valve is not publicly tradable, and my lord GabeN holds 50% of the shares.

[Vanderburg]

Profitability has nothing to do with preventing a hostile takeover.

[oJIMoBOBo]

Hopefully they buy Bungie, plough some money in there to properly maintain and advance Destiny 2 as it’s really showed since leaving activision that they don’t have the manpower to do it on their own.

Also can help fund their “REDACTED” next game they are working on.

 

I believe tencent has invested money into Bungie before also I think for some mobile game or something 

[Levent]

7 minutes ago, Vanderburg said:

Profitability has nothing to do with preventing a hostile takeover.

Correct. However lack of it it does help, significantly.

[StDragon]

1 hour ago, Moonzy said:

What if tencent bought steam

"Connection with Comrade lost"

 

Yeah, no. 

[Kisai]

4 hours ago, Levent said:

Summary

According to TweakTown's source [Behind a paywall], Chinese giant Tencent, is looking to expand its gaming network with a major gaming company. TT indicates that this could be done via hostile takeover of Take-Two or a deal with EA but article also states that in reality it is expected to be South Korean company, NetMarble. 

Quotes

 

My thoughts

Due to recent surges in stock prices of Tencent, I wouldnt be surprised if they are attempting to capitalize on their stock prices. However I dont see a hostile takeover of EA or Take-Two possible due to sheer profitability of those companies as is plus due to political atmosphere I would expect getting a loan for a few billion dollars for a US based company would be hard for them.

 

My first "news" article in 8 years. See y'all in 8 years.

Sources

https://www.tweaktown.com/news/77498/report-tencent-raising-billions-to-buy-ea-take-two-or-others/index.html

https://seekingalpha.com/news/3653045-tencent-considering-debt-financing-for-a-possible-gaming-deal-tmt-finance-says

 

If I were to place my bet, I would say they would target a company they already have investment in, eg Nexon.

 

Taking over a western developer doesn't exactly earn them any points, but taking over an eastern one in Korea or Japan is far more likely because government's seem reluctant to interfere in regulation of gaming/gambling over there, where as Western ones are already firing up the "gacha is gambling" lawsuits.

 

[spartaman64]

25 minutes ago, Kisai said:

 

If I were to place my bet, I would say they would target a company they already have investment in, eg Nexon.

 

Taking over a western developer doesn't exactly earn them any points, but taking over an eastern one in Korea or Japan is far more likely because government's seem reluctant to interfere in regulation of gaming/gambling over there, where as Western ones are already firing up the "gacha is gambling" lawsuits.

 

maybe nexon can finally get better servers

[ACEHACK]

what about epic games? i mean they already own 40% so tencent might want to take majority ownership. 

[n0stalghia]

5 hours ago, Moonzy said:

What if tencent bought steam

Impossible since Steam isn't for sale (it's a private company)

[AldiPrayogi]

Heard CDPR's stock price took quite a hit during the Holidays

[Video Beagle]

14 hours ago, oJIMoBOBo said:

Hopefully they buy Bungie, plough some money in there to properly maintain and advance Destiny 2 as it’s really showed since leaving activision that they don’t have the manpower to do it on their own.

They can revive and modernize ONI

[Doobeedoo]

The cancer is growing.

[onlybuilt4cubanxlinx]

On 1/25/2021 at 12:45 PM, Senzelian said:

I wish they would buy EA or Ubisoft. Maybe they would stop producing garbage then.

Tencent has a overlord feeling to it though. 

[Andreas Lilja]

Tweaktown lol.