Bloomberg suggests that Tencent is evaluating its minority holdings in Japanese studios, including Marvelous, as part of a global portfolio reassessment.
A recent report from Bloomberg indicates that Tencent is considering withdrawing from some of its minority investments in Japanese studios, such as Marvelous, known for developing popular games like Rune Factory and Story of Seasons. This potential move is said to be a strategic decision in line with Tencent's overall portfolio review, with a possibility of selling back minority stakes to the studios, even at a loss.
According to an anonymous source cited by Bloomberg, Tencent's decision to divest from an investment is based on whether the expected benefits of the partnership with the studio are still viable. Notably, Tencent's investments in other Japanese gaming companies like PlatinumGames, FromSoftware, and Kadokawa Corporation will reportedly remain unaffected by this review.
In response to inquiries from GamesIndustry.biz, Tencent emphasized the significance of video games to its core business and reaffirmed its commitment to the Japanese gaming market. The company acquired a 20% stake in Marvelous in 2020, investing around ¥7 billion ($65 million) with the aim of supporting the studio's expansion and new intellectual property (IP) ventures. Additionally, Tencent's extensive gaming M&A activities in 2020 included investments in 31 different companies, reflecting its robust engagement in the industry.
Among Tencent's other notable holdings in the Japanese gaming sector is Wake Up Interactive, the parent company of Soleil, the developer behind Ninjala. Tencent secured a majority stake in Wake Up Interactive in 2021, further solidifying its presence and influence in the Japanese gaming landscape.
