Tencent takes control of Chinese gaming studio behind Swords of Legends franchise in latest diversification move
- Tencent, through an investment vehicle, has acquired 100 per cent of Dongtai Yunpeng Culture Co, which owns 43 per cent of Wangyuan Shengtang
- Meng Xianming, who founded Wangyuan in 2009, will retain his chief executive role under Tencent, which has promised to give free rein to the games teams
Chinese social media and gaming giant Tencent Holdings has acquired a controlling stake in an established local video game studio, a move that fits with the company’s revenue diversification strategy.
By assuming control of Beijing-based Wangyuan Shengtang, a 15-year-old video game developer and publisher known for its Swords of Legends series, Tencent will gain access to the premium franchise and diversify its revenue stream, said Zhang Shule, game sector analyst with consultancy CBJ Think Tank.
Tencent, through an investment vehicle Guangxi Tencent Venture Capital, last Friday acquired 100 per cent of Dongtai Yunpeng Culture Co, which owns 43 per cent of Wangyuan, according to business registry service Qichacha. Separately, the investment vehicle also increased its stake in Wangyuan from 23 per cent to 31 per cent.
Together with the 20 per cent stake Tencent holds through Linzhi Tencent Technology Co, which first backed the gaming studio in late 2020, the Shenzhen-based video game powerhouse now owns more than 94 per cent of Wangyuan.
As the controlling stakeholder in the Beijing-based studio, Zhang said Tencent will gain intellectual property, development strength, as well as marketing and distribution channels that will “enrich Tencent’s gaming empire”.
