Tencent Increases Stake in Supercell to Majority Interest

Published: October 24, 2019 9:30 AM /


Tencent Supercell Majority Stake

The Tencent Supercell relationship has just gotten a little more complex. The Chinese gaming and tech consortium Tencent has increase their stake in Finnish game developer and publisher Supercell to a majority share, giving them control of the company.

Caixing Global reports that Tencent's equity in Supercell has increased from 50% to 51.2% in a consortium that holds a majority stake in the Finnish game developer. This consortium, in turn, controls 81.4% of Supercell's equity.

Tencent Supercell Shares

Tencent Supercell Acquisition Cost Tens of Millions

News of Tencent's increase in shares was released via a filing to the Hong Kong Stock exchange. The filing reveals that Tencent used a $40 million Convertible Bond to increase their share in the consortium which controls Supercell from 50% to 51.2%.

The Board is pleased to announce that on 21 October 2019, the Company, through its wholly-owned subsidiary, acquired 44,000 Consortium Shares and increased its equity voting interest in the Consortium from 50% to 51.2%. Following the acquisition, the Consortium became a subsidiary of the Company and the financial results, assets and liabilities of the Consortium will be consolidated into the financial statements of the Group.

The Company indirectly acquired 44,000 Consortium Shares by converting the entire principal outstanding and relevant interest under the US$40 million Convertible Bond issued by the Consortium into Consortium Shares.

The consortium which controls Supercell was created in June 2016 for the sole purpose of acquiring the Clash of Clans developer.

Originally founded in 2010, Supercell has seen astonishing growth in the mobile games market with games like Clash of ClansClash Royale, and Brawl Stars. Their revenue has continued to grow, crossing the €2 billion mark in early 2016.

What do you think of the Tencent Supercell situation? Do you think Tencent's greater interest will affect game development at Supercell? Let us know in the comments below!


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