Tech and entertainment giant Tencent is apparently looking to acquire more majority stakes in games companies outside of its native China.
That's according to Reuters, which reports that the company is hoping to offset reduced growth at home, likely due to the increased regulations and restrictions surrounding the games industry in China. This change in strategy will see Tencent doing more majority investments, as well as playing a more active role in the companies it has an interest in. The company's previous strategy has broadly been minority stakes in a wide variety of companies and sometimes outright acquiring firms.
What's more – Tencent apparently has its eyes on European games firms. In particular, these are related to the metaverse. This might have been the company's intention when it started negotiations to increase its stake in French giant Ubisoft, but the firm instead invested in the Guillemot Brothers Ltd, a company that holds shares in the Assassin's Creed firm. Tencent is also limited in how much Ubisoft stock it can buy and sell in the wake of this deal.
Chinese giants Tencent and NetEase have both been increasing their business outside of China due to the stringent restrictions in the country.