China’s Tencent Invests In Another American Mobile Game Firm
Tencent reportedly invested USD60 million in the acquisition of a 20% stake in Pocket Gems, a start-up mobile game company in America.
Tencent will gain one position on the board of directors at Pocket Gems, according to reports in foreign media.
Founded in 2009, Pocket Gems is headquartered in San Francisco and the company is supported by Sequoia Capital. Its latest product is War Dragons, which was launched in April 2015. This mobile game uses Pocket Gems' own 3D graphics technology, aiming to attract hardcore players who are willing to spend more time and money on games.
Prior to this investment, Tencent purchased a 14.6% stake in American mobile game company Glu Mobile Inc. for USD126 million in April 2015. In December 2014, the Chinese Internet company acquired a minority stake in Japanese game development company Aiming Inc., but no financial detail was available. In May 2014, the company acquired a 28% stake in South Korean mobile game company CJ Games for USD500 million.
Tencent distributes games via its app store, WeChat, and mobile QQ. Though the company develops mobile games itself, it will also publish third-party products and share revenue with developers.