Tencent Future Acquisitions and Divestitures
- Thread starter Shortbread
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Deleted member 11852
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Beyond it's citizens, the ideology at the heart of Chinese Government is the anti-thesis of extraterritoriality (unlike the US). And the reason for this is because it would harm China economically and to a lesser degree, China simply doesn't care what harm comes to people outside of China and who aren't Chinese.
These new edicts - well meaning or misguided - is about changing social behaviours in China, which China assesses as a risk.
https://www.bloomberg.com/news/arti...game-studio-behind-hit-nintendo-switch-titles
Tencent Buys Game Studio Behind Hit Nintendo Switch Titles
The Shenzhen-based entertainment giant has taken about a 90% stake in Wake Up Interactive Ltd. for more than 5 billion yen ($44 million), the people said, asking not to be identified because the transaction is not yet public. Wake Up owns Tokyo-based Soleil Ltd., which developed Nintendo Switch hit Ninjala and helped create Travis Strikes Again: No More Heroes. Taking over almost the entire company is unusual for Tencent in Japan, which has so far made smaller investments and mainly aimed to secure international publishing rights for future games
Tencent Buys Game Studio Behind Hit Nintendo Switch Titles
The Shenzhen-based entertainment giant has taken about a 90% stake in Wake Up Interactive Ltd. for more than 5 billion yen ($44 million), the people said, asking not to be identified because the transaction is not yet public. Wake Up owns Tokyo-based Soleil Ltd., which developed Nintendo Switch hit Ninjala and helped create Travis Strikes Again: No More Heroes. Taking over almost the entire company is unusual for Tencent in Japan, which has so far made smaller investments and mainly aimed to secure international publishing rights for future games
Silent_Buddha
Legend
That's noteworthy on so many levels. A Chinese company being allowed to basically take ownership of a Japanese company, even if it's a small company. And a Chinese company exercising such a move in the current political climate in China.
Regards,
SB
Silent_Buddha
Legend
Report: China Isn't Letting Tencent Update Apps (pcmag.com)
So, pretty much going how I feared.
How long until the Chinese government starts trying to impose and control any game companies that Tencent have acquired? Will Tencent be able to shield them from the Chinese government? Will Tencent attempt to divest itself of game companies they've acquired in an attempt to protect them from the Chinese government?
This is likely mostly focused on We Chat and the Chinese Government wanting to control the flow of information, however it's not much of a step from that to controlling the messaging within games themselves.
Regards,
SB
So, pretty much going how I feared.
How long until the Chinese government starts trying to impose and control any game companies that Tencent have acquired? Will Tencent be able to shield them from the Chinese government? Will Tencent attempt to divest itself of game companies they've acquired in an attempt to protect them from the Chinese government?
This is likely mostly focused on We Chat and the Chinese Government wanting to control the flow of information, however it's not much of a step from that to controlling the messaging within games themselves.
Regards,
SB
D
Deleted member 11852
Guest
I did respond, which you may have missed, but never. Beyond controlling it's own people China has no extra-territorial policies or laws. It's simply not a concept in their ideology. They make these moves to prevent 'harm' from their own people. They don't care less about non-Chinese people. Arguably, classic Chinese diplomacy of aiding your enemies and competitors in their own demise would suggest they would promote such things outside of China.
China has huge financial interests in Western media, which strengthens their economy, but has never has they exhibited attempt to control the narrative, only the narrative of what is released in China.
Silent_Buddha
Legend
And yet despite this, they craft their laws in such a way that they can apply them to people that do not reside in China. Specifically many of the new laws imposed in Hong Kong can be applied to anyone, anywhere in the world. China does not have the power to bring charges against them outside of Chinese territory, however, as soon as they enter China they can then be prosecuted. As well, they have gone after non-Chinese nationals as well.
For example, Chinese-Australian reporter accused of spreading secrets - ABC News (go.com) Much much worse if you are a Taiwanese National, China ‘hunts’ Taiwan nationals through forced deportation: Report | Politics News | Al Jazeera.
China attempts to justify these around the world by tying them to crimes against the country or government regardless of whether there is any veracity behind the claims. The laws recently enacted in Hong Kong are deliberately worded in such a way as to allow them more avenues with which they can go after foreign nationals that act in a way that is unfavorable to the Chinese Government.
Heck, their claims to and attempts to take over international waters (currently focused on areas of the South China Sea) is perhaps the most blatant example of this.
China strives hard to control how the world perceives China and they spend billions every year to do so. Like the numerous Chinese Government run Universities that they have had in the US. Control over messaging within games would just be an extension of that policy that they've been carrying out for well over a decade now.
Regards,
SB
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I dont know if you are talking about narrative as in WRT games then perhaps thats true (I dont take much notice of games) but if you are talking about narrative in general news then thats plainly not true, theres hardly a day that goes by without me reading some article about the CCP trying to control the narrative about how ppl overseas perceive the CCP
https://www.theguardian.com/world/china
D
Deleted member 11852
Guest
All of these are examples of China applying the law to Chinese nationals (incl. dual-nationals) or in China's jurisdiction - bearing in mind that China considers that 'China' includes, Hong Kong, Taiwan, Tibet etc. Lots of countries have laws that apply extra-territorially to their citizens abroad. The US has a raft of extra-territorial laws that apply to products sold - much further reaching than China. It's when when you buy any Apple or Google product, in those T&C are export restrictions about not taking products to countries the US consider hostile - at least most without US authorisation.
I can think of no examples of Chinese laws applying to Chinese companies that they are required to apply anywhere outside of China. The South China Sea issue isn't one of China trying to extend its law outside of China, it's one of territoriality. Aside from religion, this is the oldest conflict in the world and not something unique to China. After 300 years, the UK and France are still fighting over bloody fish!
I should have been more clear, I am referring to entertainment. A lot of Chinese money pours into Hollywood which is why so many movies are shot with a distinct China-release version in mind. It's not impacting released elsewhere and Beijing know that if they do try to directly influence foreign entertainment media to promote Chinese ideology only, this would not be commercially popular outside of China which undermines the purpose of investing.
Tencent acquires Turtle Rock Studios.
https://www.businesswire.com/news/home/20211217005008/en/
Independent creator of Back 4 Blood, Evolve and Left 4 Dead empowered to develop new games, remain under management of co-founders, Phil Robb and Chris Ashton
LAKE FOREST, Calif. & SHENZHEN, China--(BUSINESS WIRE)--Tencent Holdings Ltd. (SEHK: 00700) (“Tencent”) has acquired Turtle Rock Studios’ (“Turtle Rock”) parent company, Slamfire, Inc., the companies announced today.
https://www.businesswire.com/news/home/20211217005008/en/
Independent creator of Back 4 Blood, Evolve and Left 4 Dead empowered to develop new games, remain under management of co-founders, Phil Robb and Chris Ashton
LAKE FOREST, Calif. & SHENZHEN, China--(BUSINESS WIRE)--Tencent Holdings Ltd. (SEHK: 00700) (“Tencent”) has acquired Turtle Rock Studios’ (“Turtle Rock”) parent company, Slamfire, Inc., the companies announced today.
Tencent acquires Inflexion Games from Improbable.
https://www.gematsu.com/2022/02/tencent-acquires-inflexion-games
Improbable sold the entirety of its stake in Inflexion Games to Tencent, the details of which were not disclosed.
Inflexion Games is headquartered in Edmonton, Canada, where CEO Aaryn Flynn will continue to lead operations as the studio develops its shared-world survival crafting game Nightingale, which will now join the lineup of games published by Tencent label Level Infinite when it launches in Early Access for PC later in 2022.
https://www.gematsu.com/2022/02/tencent-acquires-inflexion-games
Improbable sold the entirety of its stake in Inflexion Games to Tencent, the details of which were not disclosed.
Inflexion Games is headquartered in Edmonton, Canada, where CEO Aaryn Flynn will continue to lead operations as the studio develops its shared-world survival crafting game Nightingale, which will now join the lineup of games published by Tencent label Level Infinite when it launches in Early Access for PC later in 2022.
Silent_Buddha
Legend
Oh damn, they are a relatively large and prolific PC indie publisher/development group with some of my favorite IPs (like King's Bounty) in their catalog.
Oh and Tencent is going to require them to change their name and branding within a few months of the acquisition, damn. That's a greater level of control than I've seen Tencent exert in the past.
I wonder if this means they are going to change how much control they exert over acquired studios going forwards? In the past, they've mostly left acquired developers alone to keep their identity and to continue doing their thing. This requirement of the acquisition is a bit concerning.
Alternatively, I wonder if this might be part of a long term plan to attempt to move the company out of China.
Regards,
SB
Oh and Tencent is going to require them to change their name and branding within a few months of the acquisition, damn. That's a greater level of control than I've seen Tencent exert in the past.
I wonder if this means they are going to change how much control they exert over acquired studios going forwards? In the past, they've mostly left acquired developers alone to keep their identity and to continue doing their thing. This requirement of the acquisition is a bit concerning.
Alternatively, I wonder if this might be part of a long term plan to attempt to move the company out of China.
Regards,
SB
The press release does not state that. It could just as well be that it is the seller which demanded that provision. And given that they still do business under the 1C name, I'd say that's the more likely of the two.
My only fear is that Tencent offers Epic/Sweeney a nice deal/sum for the rest of Epic's shares.
Yeah, that would be problematic for quite a few dev studios. As improbable as that seems, I'm not marking anything off as being impossible to happen. These are interesting times for the gaming industry.
https://www.gamesindustry.biz/artic...rity-investor-in-rime-developer-tequila-works
Tencent becomes majority investor in Rime developer Tequila Works
Fresh funding will be used to develop more original IP after work finishes on League of Legends spin-off
Tencent has become the majority shareholder in Madrid-based studio Tequila Works.
The amount of investment Tencent has made in the Rime and Gylt developer has not been disclosed, but it will be used grow the studio and develop more original IP.
The company is currently working on Song of Nunu: A League of Legends Story as part of a partnership with Riot Games.
...
Tencent becomes majority investor in Rime developer Tequila Works
Fresh funding will be used to develop more original IP after work finishes on League of Legends spin-off
Tencent has become the majority shareholder in Madrid-based studio Tequila Works.
The amount of investment Tencent has made in the Rime and Gylt developer has not been disclosed, but it will be used grow the studio and develop more original IP.
The company is currently working on Song of Nunu: A League of Legends Story as part of a partnership with Riot Games.
...
