Tencent Acquires $500M stake in South Korean Mobile Gaming Firm.
China’s Tencent Holding has announced on Wednesday that it would be acquiring over 28 percent stake in a South Korean mobile gaming firm named CJ Games for $500 million. This purchase will help China’s biggest listed Internet company, Tencent, increase its profitable growth online and mobile gaming business while expanding its presence abroad. CJ Games is a online and mobile games developer and publisher.
The investment marks as another one of the recent excitement of deals in China’s Internet sector , as Tencent, Alibaba Group Holding, one of the world’s biggest e-commerce company, and Baidu Inc, China’s biggest search engine, all continue to try and take over a as much of people’s smartphones as they can, while mobile Internet continues to increase in China.
Over 500 million people, or four in every five internet users in China, have used their mobile devices to go online during December. According to information provided by the official China Internet and Network Information Center.
“Our partnership combines CJ Games’ unrivalled game development skills and mobile game line-up, together with Tencent’s strong game publishing and operation capabilities in China,” said Martin Lau, Tencent’s president, in a press release on Wednesday.
This deal will also be allowing CJ games to establish a foothold within China and pave a road for Tencent and VJ games to make their international push, the press release said.
As China’s biggest listed Internet firm and social media giant, Tencent rules over China’s smartphone with its WeChat application, also know as Weixin in China.
Previously in January it had over 225 million active users, according to the Beijing-based consultancy iResearch coveing over three-quarters of the total number of people who were analysed. Currently the company has been trying to rollout WeChat overseas, Internationally the application currently has 355 million monthly users, the company said earlier this month.
.Tencent will be focusing more on its oversea expansion on WeChat in markets where it already has gained some traction, executives said during a conference cal following the earning results released this month.
Tencent has spent over more that 19.1 billion yuan ($3.08 billion) on investments alone during the previous year, with 17.6 percent during 2012.