Chinese tech giant Tencent has snapped up a minority stake in French developer Dontnod.
The company has invested €30 million ($36.4 million) in the Paris-based studio via its Proxima Beta Europe subsidiary. That would have bought Tencent around 30 per cent of the French developer, based on its current market cap.
This news comes alongside Dontnod announcing that it was trying to raise €50 million ($60.6 million) to fund its self-publishing ambitions via the issue of over three million new shares.
“We are delighted to welcome Tencent as a Dontnod investor," the developer's CEO and chair Oskar Guilbert (pictured) said.
"This is a real expression of trust from a key online game leader, which is behind a number of success stories and has invested in several leading companies in the video game industry. Through this partnership, Dontnod is perfectly positioned to take advantage of the various growth drivers in the video game industry, in particular in China and on mobile platforms, in cooperation with an industry leader. The capital increase announced today will enable us to step up and boost the roll-out of our development plan, which aims to capture more value from our original creations by self-publishing more games."
This is the latest in a long line of games investments and acquisitions for Tencent. At the end of 2020, Leyou shareholders gave the nod for the Chinese giant taking over the company for $1.3bn. In October, the firm invested in GTFO maker 10 Chambers.
The previous month, the US government reportedly was looking into Tencent's games investments in the United States. There's no word whether this investigation is still carrying on with the new presidential administration.