Tencent is ramping up overseas investment in gaming assets, seeking to diversify away from China even as Beijing lifts punishing restrictions on the industry.China’s largest listed company by market capitalisation is aiming to invest in or purchase gaming studios after slowing the pace of new investments towards the end of 2022, according to four people familiar with the matter. European gaming studios are the primary target, they said.
The move comes despite an improving regulatory environment at home. Beijing opened the floodgates on approving new game titles in April last year after a nine-month blockage amid a broader crackdown on gaming that hampered the growth of Tencent and rival NetEase.
“Tencent has no problem with banhao now,” said one company insider, referring to the regulatory gaming approval process in China. The group has a profitable portfolio of smash-hit games in the mainland, including legacy titles such as Honor of Kings and Peacekeeper Elite. Tencent accounted for 44 per cent of online gaming revenue in China in the first half of 2022, according to Chinese data provider Chyxx.