Raigor

Member
May 14, 2020
15,751
Previously in Tencent acquisition chapter n° 124638276823587252

www.resetera.com

Tencent is reportedly raising several $ billion to buy a U.S. or Korean gaming company Rumor

Daniel Ahmad/ZhugeEX corroborates the report and maybe knows the target of the acquisition. Any guesses?

Now they have raised $8.3 BILLION

Tencent Holdings Ltd., the creator of the messaging platform WeChat, has raised $8.3 billion in the biggest offshore syndicated loan in Asia for a Chinese firm since 2016.


Twelve banks joined the Tencent financing deal, which initially had a $6 billion size, according to people familiar with the matter. The loan will be used for general corporate purposes, the people said, asking not to be identified as they aren't authorized to speak publicly. Representatives for Tencent didn't immediately respond to requests for comment. IFR Asia earlier reported on the deal closing.

 

SlipperyMoose

Banned
Oct 28, 2017
2,231
Not a massive fan of them buying up companies as a gamer but as someone that has stocks on tencent I have been making a lot of money off of them.
 

Deleted member 8579

Oct 26, 2017
33,843
Not enough for EA, Take 2, Ubisoft by a long shot.

Mobile company, Eidos maybe.
 
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Raigor

Raigor

Member
May 14, 2020
15,751
Their previous, wildly successful game funded GI. And no, Tencent aren't involved- they're competitors with Mihoyo. Lotta reporting that Genshin is basically eating their lunch, cutting into their mobile gaming profits.

Genshin Impact needs to do a lot more to eat Tencent mobile gaming profits, when they have PUBG Mobile, COD Mobile, Arena of Valor/Honor of Kings

www.thehindubusinessline.com

‘PUBG Mobile’ was the highest-grossing mobile game worldwide in 2020: Report

Info-tech News:‘PUBG Mobile’ was the highest-grossing mobile game worldwide in 2020: Report

PUBG Mobile, combined with the Chinese localisation of the title, Game For Peace, is the No. 1 revenue-generator globally across the App Store and Google Play in 2020, accumulating close to $2.6 billion since the start of the year, up 64.3 per cent from 2019," Sensor Tower said in a blog post.

"A record five mobile games including PUBG Mobile and Honor of Kings from Tencent have generated more than $1 billion in 2020," it said.
Honor of Kings is the second highest-grossing mobile game of the year, earring close to $2.5 billion in player spending, up 42.8 per cent from 2019, as per the report.
 

The Lord of Cereal

#REFANTAZIO SWEEP
Member
Jan 9, 2020
10,850
To be honest though, I am not looking forward for the inevitable bidding war this will likely start assuming the company is public.

And my biggest hope is that it isn't Square Enix they are trying to buy out, since they are one of my favorite publishers and I'd be a lot less willing to support them if they were owned by Tencent
 

SaberVS7

Member
Oct 25, 2017
5,855
I don't think y'all have anything to fear of Tencent buying any of your $60+ AAA Package studios and publishers.

Tencent has historically targeted established F2P-GaaS companies for their acquisitions, and I doubt they'll be changing-course any time soon. Especially with a bias towards Mobile-focused studios.
 

Vault

▲ Legend ▲
Member
Oct 25, 2017
13,916
Tencent aren't gonna buy any of the big Japanese or Western Publishers

PC and mobile focused companies will be on their Radar
 

Yan

Member
Oct 29, 2017
1,730
What if they buy themselves? It's the best defence for getting bought by someone else.
 

Tallshortman

Member
Oct 29, 2017
1,843
That's the size of their warchest.
They got over 10 billion in liquidity.

Nintendo has a a market cap of $77B. Tencent currently has $37B cash on hand, which even if you include the full amount of this loan it doesn't get you anywhere close for an all cash transaction. That's before the hefty premium for any takeover. Only if Nintendo shareholders were willing to take ~60% in Tencent shares which is doubtful.
 

slothrop

▲ Legend ▲
Member
Aug 28, 2019
4,084
USA
It was a joke. The amount of money Nintendo has is absurd
The amount of money they have is not important really to any acquisition price. You would want to look at total Market Cap to start simply. The common focus on Nintendo's cash on hand routinely misses the point of a public company's finances and ownership structure. Still, Nintendo is far outside of the $10bil price range
 

The Bookerman

Banned
Oct 25, 2017
4,124
Nintendo has a a market cap of $77B. Tencent currently has $37B cash on hand, which even if you include the full amount of this loan it doesn't get you anywhere close for an all cash transaction. That's before the hefty premium for any takeover.
Just thought it was Ludicrous to think that 8 billion could net you Nintendo.
 
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Raigor

Raigor

Member
May 14, 2020
15,751
Nah not even close. Nintendo has a a market cap of $77B. Tencent currently has $37B cash on hand, which even if you include the full amount of this loan it doesn't get you anywhere close for an all cash transaction.

Companies can also pay in stock, people are often wrong when they see only the cash on hand and think X company cannot make a big acquisition.

See Nvidia, with $10 billion cash on hand but they are aiming for a $40 billion ARM acquisition with both cash and stock.
 
Oct 27, 2017
44,227
Discussions of Nintendo's valuation seem to focus on their war chest, when it should be focused on the fact they have some of the most popular videogame IP in the world as well as a 33% stake in the Pokemon IP
 

F4r0_Atak

Member
Oct 31, 2017
6,080
Home
Why are people thinking of Japanese companies when the rumor states a Korean one?
I mean buying their Western divisions, mobile or companies.
Why would they do that though? Crystal Dynamics, Eidos Montreal and Square Enix Montreal are not worth much without their IPs. I am certainly not sure they would be worth billions for that matter.
 

Tallshortman

Member
Oct 29, 2017
1,843
Companies can also pay in stock, people are often wrong when they see only the cash on hand and think X company cannot make a big acquisition.

See Nvidia, with $10 billion cash on hand but they are aiming for a $40 billion ARM acquisition with both cash and stock.

Yep already edited that in. Nintendo shareholders would have to be willing to take Tencent shares which is obviously less preferable than cash. Also it would likely be hostile even if Tencent offered a high premium of 40-50%.
 

StereoVSN

Member
Nov 1, 2017
13,620
Eastern US
Companies can also pay in stock, people are often wrong when they see only the cash on hand and think X company cannot make a big acquisition.

See Nvidia, with $10 billion cash on hand but they are aiming for a $40 billion ARM acquisition with both cash and stock.
Tencent being mainly a Chinese stock play makes it hard when talking about acquisitions of Western, Japanese or Korean companies due to Chinese regulations around stock ownership. Hence why most of Tencent's western acquisitions were cash (at least from what I remember seeing).

Yes, they are on HK and I think Nasdaq, but again, stock acquisitions with Chinese companies are not a straightforward matter.
 

Boogolo

Member
Nov 1, 2020
492
actually it *is* in the range of Ubi

Ubisoft is wildly undervalued relative to the other companies
It won't be Ubisoft. Tencent bought a 5% share of ubisoft a few years ago to help them fight off the vivendi hostile takeover but part of the deal was that tencent can't increase its ownership.