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Tencent Gains Ownership Of Another Major Title
The Chinese gaming giant continues to consume. According to The Esports Observer, Tencent has just acquired a majority stake in a consortium that indirectly holds an 81.4% stake of Supercell, the developer behind Clash of Clans, Clash Royale, and Brawl Stars. This was found based on a filing to the Hong Kong Stock Exchange.
Tencent acquired 44,000 additional shares in the consortium via a US$40 million convertible bond which increased its stake in the consortium from 50% to 51.2%, effectively making it the biggest shareholder and technically the owner of the consortium. Said consortium was founded in June 2016 as a Luxembourg SociÃ©tÃ© Anonyme solely to acquire Supercell.
In layman terms, a Luxembourg SociÃ©tÃ© Anonyme (SA) basically translates to a Luxembourg Public Limited Company. According to Luxembourg Office website, an SA offers the possibility to “promote the development of a business by bringing new shareholders on board” and “access financial markets”.
Long story short, Tencent now owns Supercell which means it also owns their games including Clash of Clans, Clash Royale, and Brawl Stars. The Chinese gaming giant is currently the biggest games company in the world in terms of revenue. Tencent wholly owns Riot Games and has stakes in Activision Blizzard and Ubisoft.