Tencent has acquired a 29% stake in Conan Exiles developer Funcom, making them the largest shareholder of the independent Norwegian game developer.
"We are very pleased to see Tencent come in as the largest shareholder of Funcom," said Funcom CEO Rui Casais in a press release. "Tencent has a reputation for being a responsible long-term investor, and for its renowned operational capabilities in online games. The insight, experience, and knowledge that Tencent will bring is of great value to us and we look forward to working closely with them as we continue to develop great games and build a successful future for Funcom."
KGJ Capital AS Shares Purchased to Make Tencent Funcom Deal Happen
The mechanism by which Tencent purchased their stake in Funcom was relatively straightforward: the Chinese-based company acquired the entirety of the shares held by the Norwegian company KGJ Capital AS. The 29% stake was purchased at a 21.8% premium over the share price, meaning that Tencent valued the company at $134.33 million as noted by Reuters.
The purchase saw Funcom's shares rise 23% on the Norwegian stock market in early trading, setting a record for the last ten weeks.
2017 and 2018 had been the most profitable years for Funcom in recent memory, largely owing to their leveraging of licensed properties to make games. In particular, their use of the Conan The Barbarian franchise to create Conan Exiles has turned out rather well for them, ultimately leading to this recent acquisition by Tencent.
Speaking of Conan Exiles, now's as good a time as any to hop into the game — it's currently on sale on Steam for 50% off until 1:00 PM Eastern Time. Why not grab it while you can?
What do you think of the Tencent Funcom deal? Do you think the acquisition of a 29% stake in the Norwegian company will see any fundamental shifts in their business? Let us know in the comments below!