Chinese conglomerate Tencent has acquired a majority stake in Canada-based, independent video game studio Klei Entertainment. CEO Jamie Cheng said the deal would enable the company, known for titles including Don’t Starve and Mark of the Ninja, to focus on long-term projects and expand creatively. For Tencent, the purchase would allow it to expand in North America’s gaming market, where it faces competition from Western players such as EA and Activision Blizzard. As well as market access, the acquisition, for an undisclosed sum, gives the Chinese firm quality intellectual property. Fans of Klei have raised concerns over Tencent’s business influence.
Tencent acquires majority stake in Klei Entertainment
Background
Klei Entertainment is an independent video game development studio based in Vancouver, Canada. The studio was founded in 2005 and has developed popular games such as Don’t Starve, Mark of the Ninja, and Oxygen Not Included.
Tencent is a Chinese multinational conglomerate that specializes in various internet-related services and products. The company is the world’s largest gaming and social media company and one of the largest venture capital firms.
The acquisition
Tencent has acquired a majority stake in Klei Entertainment, according to an announcement made by the studio’s founder, Jamie Cheng. The financial terms of the deal were not disclosed.
Cheng emphasized that the studio will continue to operate independently and that he will remain the CEO of Klei Entertainment. He also stated that the deal will enable the studio to pursue long-term projects and expand its creative vision.
Impact on Klei Entertainment
The acquisition by Tencent is expected to provide Klei Entertainment with a substantial financial injection, enabling the studio to expand its staff and resources. The move will also open up new opportunities for Klei Entertainment to market its games in China, where Tencent has a dominant presence in the gaming market.
However, some fans of Klei Entertainment’s games have expressed concern that the acquisition will compromise the studio’s creative integrity and lead to the development of games that are influenced by Tencent’s business interests.
Impact on Tencent
The acquisition of Klei Entertainment is part of Tencent’s strategy to expand its presence in the global gaming market and acquire quality IPs. The company has made several similar acquisitions in recent years, such as its acquisition of Riot Games and Supercell.
Tencent’s acquisition of Klei Entertainment is also expected to bolster the company’s position in the North American gaming market, which has traditionally been dominated by Western companies such as EA and Activision Blizzard.
Conclusion
Overall, the acquisition of Klei Entertainment by Tencent is a significant move that will have a significant impact on both companies. While Klei Entertainment will benefit from the financial resources and marketing opportunities provided by Tencent, the acquisition raises questions about the studio’s creative independence and the influence of Tencent’s business interests on its future games.