Tencent Holdings Ltd. is inching closer to its $6.6 billion mega deal to purchase a majority stake in Finnish group Supercell Oy, people familiar with the matter said.
If pushed through, the deal would become the "biggest-ever purchase of a mobile games maker," underscoring the growing interest of big companies in the mobile gaming market, Reuters said.
Tencent, a heavyweight in China's online entertainment and social network industry, is looking to buy a 73.2-percent stake in "Clash of Clans" maker Supercell, putting the Finland-based company at a value amounting to more $9 billion, Reuters reported, citing statement from unnamed sources.
The majority stake will be bought from Japan's SoftBank Group Corp., which is scrambling to fix its balance sheet woes as it faces an $80-billion debt.
Tencent is also said to be in discussions with several financial backers, wooing them to co-invest in the deal. Beijing-based investment management firm Hillhouse Capital Group is among the groups involved, sources revealed.
The deal could improve Tencent's "research and development capability and boost revenue in the world's largest mobile gaming market," Reuters wrote.
The company owns Riot Games, developer of mobile game "League of Legends," and is a shareholder in Activision Blizzard Inc., maker of "Call of Duty."
"Tencent has weaker research and development capability and such a deal could help enhance it," TrendForce's senior director Jeter Teo said in an interview with Reuters.
The Wall Street Journal reported that a finalized deal could be announced next week, although financial hurdles remain on the horizon.
Still, the deal highlights Supercell's lure in the fast-rising mobile gaming industry.
Last year, the company was valued at $5.25 billion, according to the WSJ's sources.
From 51 percent, SoftBank's stake was raised to 73 percent in the same year. Transaction value was left undisclosed "after Supercell's shares outstanding received interest from a Chinese fund," the WSJ wrote.
Supercell's pull seems to be hinged on the "phenomenal long-term retention of players," which is notably exemplified in Clash of Clans, Kabam Inc.'s Kevin Chou told the WSJ.