A report from Bloomberg suggests that Tencent is in talks to exit some of its minority investments in Japanese studios, including Marvelous, the developer of the Rune Factory, Daemon x Machina, and Story of Seasons games.
The report suggests the move is part of a global reassessment of Tencent’s portfolio, and that in some cases the Chinese firm might sell minority stakes back to the studio’s management, even if this incurs a loss.
Bloomberg refers to an anonymous source who says that one of the criteria for whether Tencent will exit an investment is “whether its envisioned synergies with a portfolio company may have lapsed.”
The report notes that Tencent’s investments in PlatinumGames, FromSoftware, and the latter’s parent company, Kadokawa Corporation, will be unaffected.
GamesIndustry.biz contacted Tencent for comment, and received the following response: “Video games are core to Tencent’s business. We remain fully committed to working with our investees and maintaining our strong presence in the Japanese game market over the long term.”
Tencent acquired a 20% stake in Marvelous in 2020 for approximately ¥7 billion ($65 million). The studio planned to use the investment to expand its existing properties and launch new IP. In the same year, Tencent made a record number of games M&A deals, investing in 31 companies.
Among the other Japanese gaming companies in Tencent’s portfolio is Wake Up Interactive, the parent of Ninjala maker Soleil. The Chinese company bought a majority stake in the firm in 2021.