Key Takeaways
Tencent Holdings Ltd. has increased its stake in Game Science, the developer of the highly anticipated title “Black Myth: Wukong,” to 24% as another key shareholder exited.
The move, confirmed by business registration filings on April 30, deepens Tencent’s ties to one of China’s most promising game studios. Guangxi Tencent Venture Capital, a subsidiary of the tech giant, raised its holding from 5% previously. The financial terms of the transaction were not disclosed.
The stake increase was facilitated by the exit of Tianjin Hero Jinkong Technology, a subsidiary of Hero Entertainment, which sold its entire 19% holding. Despite Tencent’s larger position, Game Science founder Feng Ji remains the de facto controller of the company with a 38.76% stake. Two employee shareholding platforms hold the remainder of the shares.
This investment strengthens Tencent’s position in the market for high-budget, premium games, known as AAA titles. “Black Myth: Wukong” is a global phenomenon, and its success is seen as a major step forward for the Chinese gaming industry. Game Science was founded in 2014 by Feng Ji and several former Tencent colleagues.
The increased investment provides Game Science with significant resources as it reportedly works on a follow-up title, “Black Myth: Zhong Kui.” For Tencent, the move secures a larger share of the profits from a blockbuster franchise and tightens its relationship with a studio known for its creative quality.
This article is for informational purposes only and does not constitute investment advice.
