Tencent’s stake in the video game industry continues to swell with the China company forking over $8.6 billion to reel in of “Clash of Clans” developer Supercell from Japan’s Softbank. Analysts applauded the move with some calling it a bargain for the mobile developer for an 84% share in the highest earning mobile games company on the planet, According to Newzoo, combined revenues from both companies totaled $11.1 billion in 2015 to make up 12% of all game revenues generated globally last year while China remained an elusive, though growing, market. So what does this mean for the gaming behemoth? Newzoo reports that Tencent will now grab 13% of this year’s $99.6 billion global games market.
“This was clearly not a surprise, said DFC Intelligence CEO David Cole via Gamasutra. “Tencent was clearly in the market and we mainly see it as a way for Tencent to expand into North America and Europe. Tencent has struggles to grow outside of Asia and Supercell is the leading provider of high-end mobile games in Western markets. That question is, did Tencent purchase Supercell at its peak?”