Gamer Hate

Belligerently lacking in remorse.

Sunday, June 19, 2016

Tencent’s Acquisition of Supercell

First you must read about the potential hostile takeover of Supercell by Tencent.

Tencent is basically initiating a hostile takeover of Supercell. The developer who brought us 2 of the most successful global mobile games in recent history. Clash of Clans, and Clash Royale (setting aside Hayday and Boom Beach for now, which are also successes). What this primarily means is that within China, Supercell will now become a major influence in their mobile game market. How Tencent will change the game and Supercell’s structure itself remains to be seen.

Will they make dramatic changes? Probably not to Supercell itself or to their games on the global market. Instead, they will likely add things to their games specifically for China’s internal software market (they have separate app stores from the rest of the world). They may add QQ and other layers in to entice and keep Chinese players playing the app.

If Riot Game’s acquisition is any indicator, this will be a net positive for Supercell, as they will likely be able to initiate new projects with Tencent’s money, or at the very least generate revenue from China far beyond what they were able to get on their own (for reference, only Clash Royale is just barely in the top 25 grossing apps in China). Given the 6.6 billion that Tencent has paid, you can rest assured that they are certain they will make this money back and then some over the course of 5 years. The real question is, what will Tencent do with all these acquisitions when their income finally slows and if they have no other products prepared.

posted by CommanderHate at 11:18 pm  

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