Chinese gaming conglomerate Tencent has its eyes on another developer: it's aiming to invest €30 million into Dontnod Entertainment (Life is Strange, Vampyr) as part of an upcoming deal.
Dontnod Entertainment is a game developer that has put out some interesting titles in its short lifespan of 12 and a half years. While its first commercial release Remember Me didn't fare that well, its second game Life is Strange proved to be a popular episodic game — so much so that it spawned the spin-off Life is Strange: Before the Storm and the sequel Life is Strange 2. It's looking like this developer will be the next company added to Tencent's growing portfolio of game developers — albeit only in part.
Tencent's Dontnod Investment to Fuel Future Game Development
Tencent is investing €30 million ($41.4 million) into Dontnod Entertainment and acquiring a minority stake in the company. This is three-quarters of a €40 million offering of new shares for the company.
Why is Dontnod looking to grow? Simply put, it's looking to develop more self-published, original IPs and it's going to need the capital to get it done. This fresh influx of cash won't just help the company make new games — it looks like it will accelerate the process, too.
"Through this partnership, DONTNOD is perfectly positioned to take advantage of the various growth drivers in the video game industry, in particular in China and on mobile platforms, in cooperation with an industry leader," explained Dontnod's Chairman and CEO Oskar Guilbert in a press release. "The capital increase announced today will enable us to step up and boost the roll-out of our development plan, which aims to capture more value from our original creations by self-publishing more games."
What do you think of Tencent acquiring a minority stake in Dontnod Entertainment? What do you hope the company's next game will be about? Let us know in the comments below!