Tencent Has Acquired A Minority Stake in Dontnod Entertainment
Tencent has announced they've acquired a minority stake in Tell Me Why and Life is Strange series developer Dontnod Entertainment.
In a report from Gamesindustry.biz, Tencent has acquired a minority stake in Life is Strange developer Dontnod Entertainment.
Tencent’s stake in the Life is Strange developer values at 30 million euros ($36.3 million USD). They’ll now have a seat in Dontnod’s board of directors. Additionally, this move helps the developer inch towards raising 40 million euros ($48.5 million USD) to bring their goal of self-publishing to fruition.
“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,” said Dontnod chairman and CEO Oskar Guilbert. “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.”
Over the past couple years, Dontnod has released three games in their Life is Strange series. The latest one is Life is Strange 2 which wrapped up in December 2019. They also released Tell Me Why, their latest episodic narrative game. Tencent having a minority stake also helps the developer reach a wider audience in China. Additionally, it’ll help them make a larger impact in the Chinese mobile games market.
“We are delighted to welcome Tencent as a Dontnod investor,” continues Guilbert. “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.”
Over the past few years, Tencent has made a larger effort in acquiring stakes in game companies. Recently, they purchased a majority stake in Klei Entertainment, the developer behind Don’t Starve. Additionally, they’ve partnered with companies like EA, Activision, and The Pokemon Company.
Tell Me Why is available now on Xbox One, Xbox Series X|S, and PC. Stay tuned to DualShockers for more news on Dontnod Entertainment.