Tencent strengthens its share in the gaming industry with a recent deal with leading Chinese gaming firm Seasun. (Photo : Getty Images)
Chinese Internet giant Tencent has poured in an investment worth $142.2 million in the country's leading gaming firm, Seasun, chinatechnews.com reported.
Under the deal, Tencent will now own more than 90 million Seasun shares, which is around 9.9. percent of the company's total issued shares.
The acquisition was done in two parts through Tencent's subsidiary, Image Frame Investment.
Reports have surfaced that around $62.2 million was spent to purchase 4.3 percent of Kingsoft, the parent firm of Seasun; while $80 million was spread across Xiaomi Ventures, United WebSoft and Westgate Holdings, totaling to 5.6 percent of the shares.
Based on the cooperation agreement, the Chinese Internet powerhouse will have the exclusive priority to publish and operate a simplified Chinese version of new Seasun games in mainland China should the gaming firm decide not to publish and operate them on its own.
The same applies if Seasun plans to sell any of its game-related intellectual properties.
Seasun has been in the gaming industry for over two decades, and it has developed itself into a digital interactive entertainment firm. The company is known for the mobile games "GO Titans," "Ships of Fury" and "Brave Cross." It is also widely popular for the multiplayer online game, "JX Online 3."
On the other hand, Tencent remains as the global leading video game company in terms of revenue.
Many analysts consider the Tencent-Seasun partnership as a "strong combination," the article said.
According to Zou Tou, Kingsoft and Seasun CEO, Tencent has played a significant role in Kingsoft's network security business unit. Saying as such, he acknowledged that its recent strategic investment in Seasun will prove to be beneficial in enhancing their prior partnership.
Meanwhile, Tencent senior vice president Ma Xioyi shared that Tencent and Seasun are actually highly complementary players in the gaming industry.
With the help of Tencent platforms, Ma expressed hope that Seasun can create more quality mobile and online games in the future.
