Maxime

Member
Oct 27, 2017
3,193
DONTNOD ANNOUNCES A BUSINESS COOPERATION AGREEMENT WITH TENCENT AND THE SIMULTANEOUS LAUNCH OF APPROXIMATELY EUR 40 MILLION CAPITAL INCREASE TO FINANCE ITS EXPANSION INTO MORE SELF-PUBLISHED GAMES

  • Launch of approximately €40 million capital increase through an accelerated bookbuilding process, including the acquisition of a minority stake by Tencent through an investment of €30 million
  • Business cooperation agreement signed between Tencent and DONTNOD

January 27, 2021. DONTNOD Entertainment ('DONTNOD' or the 'Company'), an independent French studio that creates and develops video games, today announced the launch of a capital increase without preferential subscription rights for the benefit of a category of persons and intended exclusively for qualified investors, as defined in Article 2(1)(e) of EU Regulation 2017/1129 of June 14, 2017, through an accelerated bookbuilding process, for an expected amount of €40 million (the 'Offering'). The new shares will be admitted to trading on the Euronext Growth market in Paris.

On the basis of the maximum authorized size of the Offering of €50 million, the maximum number of shares to be issued would be 3,125,000 new shares.

In connection with the Offering, Tencent Holdings Limited ('Tencent'), a leading internet services provider, has undertaken to invest €30 million to support the studio's development through its subsidiary Proxima Beta Europe BV. As part of this investment, Tencent has an option to propose the appointment of a representative on the Board of Directors.

The funds raised will mainly be used to finance the ramp-up of DONTNOD's strategy to develop new self-published intellectual properties worldwide on PC, consoles and mobile platforms, and thereby take full advantage of positive trends within the industry for creators of internationally renowned and original games, such as DONTNOD.

DONTNOD is also proud to announce the concurrent signing of a business cooperation agreement with Tencent.

Oskar Guilbert, Chairman and Chief Executive Officer of DONTNOD, said: "We are delighted to welcome Tencent as a DONTNOD investor. This is a real expression of trust from a key online game leader, which is behind a number of success stories and has invested in several leading companies in the video game industry. Through this partnership, DONTNOD is perfectly positioned to take advantage of the various growth drivers in the video game industry, in particular in China and on mobile platforms, in cooperation with an industry leader. The capital increase announced today will enable us to step up and boost the roll-out of our development plan, which aims to capture more value from our original creations by self-publishing more games. "

www.actusnews.com

DONTNOD ENTERTAINMENT

DONTNOD ANNOUNCES A BUSINESS COOPERATION AGREEMENT WITH TENCENT AND THE SIMULTANEOUS LAUNCH OF APPROXIMATELY EUR 40 MILLION CAPITAL INCREASE TO FINANCE ITS EXPANSION INTO MORE SELF-PUBLISHED GAMES
 
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bing

Banned
Apr 27, 2020
1,376
nowhere, canada
Hopefully they are able to continue making the same story-driven games they've been making, their games have made them my favorite studio on the market right now
 

Somnia

Chicken Chaser
Member
Oct 25, 2017
3,045
This is a lot like what they did with Platinum most likely. Just helping fund DONTNOD and DONTNOD get to stay independent.
 

Gentlemen

Member
Oct 25, 2017
10,145
Given Tencent's extremely long list of capital investments and total ownership of many game makers I have to really wonder where all this concern that they're suddenly going to have notes on the script for life is strange 3 is coming from.
 

Expy

Member
Oct 26, 2017
10,234
This isn't majority stake right? It's just majority of new capital investment.

So, they just have more pull now, not decision making power just yet.
 

Kordelle

Prophet of Truth
Member
Oct 27, 2017
1,620
Damn that sucks, don't know if they still will be able to tell LGBTQ stories with the CCP in the house.
 

BoxManLocke

Member
Oct 25, 2017
4,179
France
It's great to see a company invest in DONTNOD. Their games don't exactly light the world on fire comercially so I'm glad they get to stick around thanks to this
 

Gentlemen

Member
Oct 25, 2017
10,145
Damn that sucks, don't know if they still will be able to tell LGBTQ stories with the CCP in the house.
yes you're absolutely right the company that just poured tens of millions of dollars into a game developer is about to destroy one of the cornerstones of their critical and financial success.
 

Okii

Banned
Oct 25, 2017
3,189
People read Tencent and think bad but this seems like a normal thing that's happened hundreds of times over without anyone thinking anything of it.
 

Deleted member 56752

Attempted to circumvent ban with alt account
Banned
May 15, 2019
8,699
It's a minority stake in the company. They get to make a new IP. Seems like a good situation overall
 

Kordelle

Prophet of Truth
Member
Oct 27, 2017
1,620
yes you're absolutely right the company that just poured tens of millions of dollars into a game developer is about to destroy one of the cornerstones of their critical and financial success.
Going after the chinese games market (ZhugeEX tweet) is basically already confirming my fear but sure.
 

BoboBrazil

Attempted to circumvent a ban with an alt
Banned
Oct 25, 2017
18,765
This is good imo. They are my favorite studio and it seems like their last game flopped so if they can stay in business to make more games it's a good thing.
 

mreddie

Member
Oct 26, 2017
46,212
As long as they still can make LGBTQ+ friendly stories but man, Tencent getting all in and it's getting very scary.