Tencent Future Acquisitions [2021]

Why Tencent is so prone on acquiring stakes left and right? Why other companies don't do that and try to buy the company itself? What are the benefits?

 

it likely gives them some insight into the operations of the companies that they invest in, and its also likely that they get the right to counter-offer any potential acquisition offer made by another company.

This ensures that no one else is going to acquire the company without them knowing about it, and if they want to, stopping it. The reason microsoft or sony, (or anyone else for that matter) is not doing this is because having 10% ownership of a ton of companies does nothing for them, it doesnt get any content on gamepass for microsoft, and it doesnt make them first party for playstation. Microsoft and sony's business model isnt entirely based on revenue, of course thats part of it, but increasing the user base is a bigger part (which of course leads to more revenue, but having a one time hit of revenue from a game that does well isnt as good as increasing the player base long term)

 

I see. So basically Tencent is doing a long play there. I wonder if they own a lot of shares can they purchase the whole company if needed.
Seems like a soild approach that other companies could use. Like if they purchase stock of Capcom, T2, EA etc. they can prevent any future acquisition of that company until they decide to do that themselves.

 

Tencent is also appealing to companies who have no presence in the China, as they can assist them with navigating the requirements of what must be done to make inroads.

 

MS is working with Netease there right?

 

yeah they are handling the china version of minecraft, I dont know if the partnership goes beyond minecraft though. I think sea of theives could do well internationally with a strong local partner in someone like netease, it will be interesting to see if they expand their partnership

 

I thought Sea of Thieves was available in China though...

 

not on xbox or the windows store, though apparently you can still buy it if you have an international copy of steam while in china