Chinese industrial giant Tencent has invested in another Western asset. The company became a minority owner of the publisher of hyper-casual games Voodoo. The value of the transaction is unknown. However, it is said that the share was bought at a combined valuation of Voodoo at $1.4 billion.
The deal was not a surprise. Back in July, there were reports of ongoing negotiations between representatives of companies. Then it was said that Tencent was interested in 20-25% of the game publisher based in France. The sum of $568 million was called, based on an estimate of $1.6 billion.
The deal is beneficial for both parties.
Voodoo, it will help strengthen its position in the Asia-Pacific market on the Android platform,” Alexander Yazdi, CEO of Voodoo, said on the pages of TechCrunch. It is also noted that the company’s portfolio of projects is ideal for the WeChat gaming platform.
As for Tencent, for her, buying a successful Western company is both securing a foothold in the hyper—casual games market, where Voodoo is one of the leaders today, and a step towards portfolio diversification, and access to a powerful library of game titles.
However, as our colleagues from InvestGames report, the deal is not as interesting as it looks at first glance. Analyst Eric Kress says that $1.4 billion for Voodoo is too much in an environment where Apple is going to give up on IDFA.
Also on the topic:
- Tencent is going to acquire a minority stake in VoodooThe advertising market on iOS is waiting for shocks.
- Apple’s “blow” on IDFA is to blame for everythingIs there any news?
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