Tencent Is Said to Mull Exits From Game Studios Like Marvelous

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3▲1 ▼2Impact / 5
Summary · why it matters

Tencent Holdings Ltd. is negotiating exits from several game studio investments in Japan, including Tokyo-traded Marvelous Inc., as part of a reassessment of its global portfolio. The Chinese game-publishing giant is evaluating its minority holdings in many studios and in some cases is preparing to sell stakes back to the original management team, even if it means incurring a loss. Tencent is navigating a prolonged slump for the games industry while playing catchup in the capital-intensive artificial intelligence race against peers Alibaba Group Holding Ltd. and ByteDance Ltd. The company considers whether its envisioned synergies with a portfolio company may have lapsed as a criterion for exiting an investment. Tencent's bets on marquee studios like closely held PlatinumGames Inc. and Elden Ring maker FromSoftware Inc. and its parent Kadokawa Corp. remain unaffected.

Impact on assets 6

Artificial Intelligence▲
Digital Finance & Tokenization▼
Tencent Holdings Ltd
0700
▼ NegativeCapitalrelevance

Tencent is exiting game studio investments, potentially incurring losses, as part of portfolio reassessment.

Communication Services▼
Marvelous Inc.
7844
▼ NegativeCapitalrelevance

Tencent is negotiating exit from Marvelous, potentially selling stake back to management.

Spatial Computing / AR/VR▲
Kadokawa Corporation
9468
▲ PositiveCapitalrelevance

Tencent's stake in Kadokawa and FromSoftware remains unaffected, implying stability.

Off-coverage companies 3

ByteDancei
Private± Mixedrelevance

FromSoftware Inc.i
Private± Mixedrelevance

PlatinumGames Inc.i
Private± Mixedrelevance