Crytek May be Acquired by Tencent; Concerns of Espionage Appear
Tencent is said to be preparing to acquire Crytek. This would be a controversial move, as the team also develops technology for military simulators, so there are fears that it could be used by China to spy on the NATO countries.
- Chinese company Tencent is trying to acquire devs at Crytek;
- Tencent is prepared to spend over EUR 300 million on the acquisition;
- The deal raises controversy as the studio's technologies are used in military simulators;
- For this reason, experts and developers fear that after the acquisition Chinese authorities will be able to use Crytek's technology for spying.
Tencent has invested billions of dollars in U.S. and European development studios in recent years, buying out many of them in their entirety (such as Yager and Klei Entertainment) and acquiring a partial stake in others (this has been the recent fate of Dontnod Entertainment and Bohemia Interactive, among others). According to the latest reports, the next target for acquisition by the Chinese giant is to be the team at Crytek, i.e. the creators of Crysis.
The case is reported by the German newspaper Bild. Tencent is ready to spend more than 300 million euros to buy the studio, and everything is to be done through the European branch of the Chinese company.
The case is all the more interesting as Crytek does not only create video games. As Bild editors emphasize, an important part of the company's business is working on simulators for the army, including the armed forces of the NATO countries. Developers fear that after the studio is taken over, these technologies (including the CryEngine) and programs could be used to spy on Western militaries and military companies.
Tencent publicly presents itself as an independent company, but according to Bild editors, it has strong ties with the Chinese authorities. In 2017, the conglomerate promised to significantly increase the share of members of the Chinese Communist Party in its structures, including especially in management positions, and even then they accounted for 23% of the workforce,.
Bild reached out to Tencent and Crytek for a comment, but the editors did not get a response. In turn, Henning Otte, the defense expert of the current German government, said that the studio's acquisition would be a threat to national security and must be prevented.
Bild's investigation into the matter is ongoing. Currently, the newspaper cannot disclose all the information it has obtained, as this could jeopardize its sources.
