Date
27 May 2017
Supercell CEO Ilkka Paananen (L) and Tencent President Martin Lau pose for a picture after inking an acquisition agreement in Helsinki on Tuesday. Photo: Reuters
Supercell CEO Ilkka Paananen (L) and Tencent President Martin Lau pose for a picture after inking an acquisition agreement in Helsinki on Tuesday. Photo: Reuters

Tencent buys ‘Clash of Clans’ developer Supercell for US$8.6 bln

Chinese internet giant Tencent Holdings has inked an agreement to acquire Supercell, the Finnish maker of the “Clash of Clans” mobile game, for US$8.6 billion.

Under the deal, Tencent and its partners will buy 84.3 percent stake in Supercell, valuing the gaming startup at about US$10.2 billion.

The shares will be purchased from Japan’s SoftBank Group and the Finnish firm’s current and former employees. 

It marks the biggest-ever acquisition for Tencent, highlighting the Shenzhen-based firm’s overseas ambitions, the Wall Street Journal noted.

““We are very bullish on the [mobile games] market,” Tencent President Martin Lau was quoted as saying in a conference call.

Online games accounted for more than half of Tencent’s US$15 billion revenue last year.

By teaming up with Tencent, Supercell gains access to Tencent’s WeChat and Mobile QQ messaging apps, which the Chinese firm uses to distribute mobile games.

Supercell Chief Executive Ilkka Paananen said his company is working on integrating its gaming platforms into WeChat and other social platforms in China.

Tencent is teaming up with financial investors to purchase the Supercell stake.

The deal is expected to close in the third quarter.

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RC

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