Tencent

Tencent is a developer and publisher.

Tencent Webpage

A Chinese conglomerate operating across multiple industries, headquartered in Shenzhen. Tencent is one of the world’s most profitable multimedia companies and the largest video game company globally. The conglomerate holds shares in over 600 companies and owns studios such as Riot Games, Funcom, Sumo Group, and Turtle Rock Studios, as well as majority stakes in Techland, Yager Development, Fatshark, and Tequila Works.

Tencent's history

Difficult beginnings

The company's history begins in November 1986. The company was founded by Pony Ma, Zhang Zhidong, Xu Chenye, Charles Chen, and Zeng Liqing. Tencent’s first creation was the OICQ instant messenger, released in February 1999 and later renamed QQ.

Surprisingly, Tencent was unprofitable for its first three years of operation. In 2001, South African company Naspers acquired a 46.5% stake in Tencent. Tencent made its debut on the Hong Kong Stock Exchange in June 2004.

Initially, the company’s revenue came mainly from advertising and premium subscriptions to the QQ instant messenger; over time, Tencent shifted to earning primarily from fees for its mobile version and licensing its distinctive penguin logo. In 2011, Tencent launched its social media app Weixin, which was later rebranded as WeChat.

The rising tide

Although Tencent began exploring the video game market in 2004 and acquired licenses for CrossFire and Dungeon Fighter Online four years later, the company didn’t take its first major step into the industry until February 2011. At that time, it acquired a majority stake in Riot Games, the studio behind League of Legends. In June 2012, Tencent also took a minority stake in Epic Games. In 2013, Tencent added Kingsoft Network Technology and Activision Blizzard to its portfolio, helping separate the latter from another giant, Vivendi. In March 2014, Tencent acquired a minority stake in South Korea’s CJ Games, and in June 2016, it took over Supercell, the studio behind Clash of Clans.

Tencent’s investments extended beyond video games, with the company also putting money into numerous technology and internet ventures over the years. Among its many investments are the Chinese search engine Sogou, the online bank WeBank, and global giants like Tesla.

All of this propelled Tencent into the list of the world’s ten largest companies in May 2017, and in June it climbed to eighth place on BrandZ’s ranking of the 100 biggest global brands. Curiously, the company tried to acquire Finland’s Rovio Entertainment, the studio behind the Angry Birds series, but the negotiations ultimately fell through.

In 2017, Tencent acquired a minority stake in Frontier Developments, the studio behind games like Elite: Dangerous and Planet Zoo. In August of that year, Tencent became the second Asian company, after Alibaba Group, to reach a market capitalization exceeding $400 billion. In November, the conglomerate acquired a minority stake in Snap Inc. - the company behind Snapchat. With a market capitalization of $475 billion at the time, Tencent became the world’s largest video game publisher. Shortly afterward, it surpassed the $500 billion mark, overtaking Meta (formerly Facebook). In February 2018, Tencent acquired a minority stake in Skydance Media.

Minor setbacks and further investments

Tencent had enjoyed more than a decade of growth, which came to a halt in the second quarter of 2018 when the company reported a decline in profits. The news hit its stock market valuation hard, causing its market value to drop by nearly $50 billion. In March 2018, Tencent acquired a minority stake in Ubisoft, followed by a minority stake in KRAFTON in October. In January 2020, Funcom became part of Tencent, and in February, Roblox Corporation joined its group of investments.

In January 2021, Tencent acquired majority stakes in Klei Entertainment and Fatshark, followed by Yager Development in June. Meanwhile, the Chinese company also invested in Bohemia Interactive Studio. In July, China’s antitrust regulator blocked Tencent’s attempt to acquire two of the country’s largest streaming services, Huya Live and DouYu. In October, Tencent acquired a 22% stake in Bloober Team, and in December, it took over Slamfire Inc., the parent company of Turtle Rock Studios. In January 2022, it emerged that Tencent was preparing to acquire Black Shark, one of China’s largest gaming smartphone manufacturers. Ultimately, though, the Chinese giant abandoned those plans. However, in the same month, it acquired Sumo Group, the parent company of Sumo Digital. In February, 1C Company, renamed Fulqrum Games, joined Tencent’s portfolio, and in March, the company acquired a majority stake in Tequila Works.

In June 2022, Tencent reported another decline in revenue, citing the COVID-19 pandemic and stricter regulations from the Chinese government as the main causes. In August, Tencent acquired a minority stake in the studio FromSoftware. In September, it was revealed that Tencent had acquired a 49.9% stake and 5% voting rights in Guillemot Brothers Limited, the parent company of Ubisoft. Shortly afterward, the conglomerate announced it had acquired a minority stake in Triternion, the studio behind Mordhau.

In June 2023, Lucid Games, the studio behind Switchblade and Destruction AllStars, joined Tencent’s portfolio. Finally, in July 2023, it was announced that Tencent had acquired a majority stake in the Polish company Techland. It was set to retain its operational independence, with Pawel Marchewka remaining as CEO.

In December 2023, news emerged of planned Chinese government regulations on online games, which negatively affected the financial health of several companies, including Tencent. Nevertheless, the giant quickly bounced back, reporting a 7% revenue increase for the fourth quarter of 2023 in March 2024. Furthermore, in July, Tencent announced the acquisition of Visual Arts, the parent company of Key, known for titles such as Clannad. In November 2024, Tencent invested in Kuro Games, acquiring a majority stake in the studio.

Tencent to the rescue of Ubisoft

After Ubisoft’s situation began to decline in 2024, its collaboration with Tencent intensified. In spring 2025, it was announced that Tencent would establish a subsidiary with Ubisoft to oversee the Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six franchises. Tencent was set to receive a 25% stake in the then-unnamed entity, with the entire deal expected to close by the end of 2025.