Tencent Reduces Investment Deals in 2023 Amid Industry Trend
Tencent, the Chinese internet giant and the world's largest gaming company, significantly reduced its investment activities in 2023. According to a report by the South China Morning Post, Tencent completed only 39 investment deals last year, marking a steep decline from the 95 deals in 2022 and 299 in 2021.
The company's focus in 2023 was primarily in the video games, healthcare, and corporate services sectors, with seven of the investments dedicated to AI startups. This reduction in deals represents a 59% decrease from the previous year and an 87% drop compared to 2021, positioning Tencent at the forefront of a broader investment pullback by China's major corporations.
Despite the cutback, Tencent's influence in the gaming industry remains substantial. In 2023, the firm invested in the new UK studio Lighthouse Games and acquired a majority stake in Techland, the developer behind "Dying Light." Tencent's extensive portfolio includes ownership and stakes in several gaming companies, such as Riot Games, Funcom, Sumo Group, and stakes in Epic Games, Ubisoft, and Remedy Entertainment.
However, in line with industry trends, Tencent has downsized some of its gaming operations, including the closure of its US-based Team Kaiju studio at the end of 2023. This move reflects the challenging environment facing gaming companies globally as they navigate a changing economic landscape.
Source: GamesIndustry.biz