Tencent purchases a small stake in Remedy Entertainment, creators of Alan Wake and Control

It is well known that Tencent purchases pieces of a wide range of companies. However, they don't take enough to be in charge or to have complete control, just enough to gain profits and have a big say in each company. Their business model has worked well for them and has helped them own parts of most video game companies.

With the acquisition of Remedy Entertainment, Tencent Holdings Ltd. has become the owner of a small stake in the developer behind Alan Wake, Quantum Break, and the critically acclaimed Control. Despite not purchasing the majority stake, Tencent continues to expand its portfolio. It is a great example of what they typically do and why they have such a big influence over Bytedance and Epic Games.

Tencent may end up owning a small share of every gaming company if this trend continues, Alan Wake is just one example

A massive Chinese and multinational conglomerate holding company, Tencent came into existence in 1998. The company, although relatively young, is valued at over $500 billion. In part, this is due to the constant acquisitions that Tencent makes, just like its majority stake purchase of Klei Entertainment, a developer of Don't Starve.

Tencent has acquired 500,000 shares of Remedy Entertainment, creators of Alan Wake, which is 3.8%, according to Gamesindustry.biz. The shares were sold to Tencent by Accendo Capital, which still holds 1.8 million shares of Remedy, or 14%. Remedy, the makers of Alan Wake, were notified of the sale after it was completed.

Tencent is not yet at the point where it can make major decisions about Remedy, the developer of Alan Wake, with this acquisition. Tencent has only dipped their toe into the water and invested, but they usually don't take long to acquire a good stake. The CEO of Remedy Entertainment, Tera Virtala, is thrilled to learn Tencent has invested in the company.

“We are naturally aware that Tencent has extensive expertise in the industry, so we are honoured by their interest in Remedy and happy to welcome Tencent as a new shareholder.”

In the past, Tencent has acquired majorities in many companies. As of 2021, Tencent owns 100 percent of Riot Games, 40 percent of Epic Games, 11.5 percent of PUBG, Leyou (and all of its subsidiaries), as well as others. Tencent seems to choose between moves in which the company has decision-making power as well as moves purely economic and nothing else. Tencent is only interested in making money from this acquisition at the moment, but we will see what happens as time goes on.

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