Softbank’s Supercell acquired by Tencent for $8.57 billion
Another week, another major tech acquisition — this time spanning across the globe.
Japanese telco Softbank is selling its 84 percent stake in Finnish mobile games maker Supercell. Chinese multimedia company Tencent will acquire the stake for up to $8.57 billion. The deal is expected to close next quarter.
Softbank is going through a period of transition after years of losses and its CEO, Nikesh Arora, resigned this week. Softbank founder and replacement CEO Masayoshi Son has a $55 billion stake of Tencent. That company is looking to expand its lucrative gaming portfolio after picking up League of Legends developer Riot Games late last year.
For Supercell’s part, cracking into the largely untapped Chinese market with its first-party games that many users own clones of is a big opportunity for the company. Tencent ownership also keeps money flowing in without direct pressure from shareholders (as opposed to having Supercell go public).
The deal’s big enough to jump into the middle of our list of the biggest acquisitions in mobile technology.