Tencent, the multinational conglomerate, has significantly bolstered its investment in Wangyuan Shengtang, a Beijing-based gaming developer renowned for its action-RPG series, Swords of Legends, known as ‘Gujian’ in China.
Through its investment arm, Guangxi Tencent Venture Capital, Tencent acquired the entirety of Dongtai Yunpeng Culture Co. on Friday, as reported by the South China Morning Post. Prior to this acquisition, Dongtai held a 43% stake in Wangyuan, while Tencent’s own stake increased from 23% to 31%.
This move follows Tencent’s initial investment in Wangyuan through Linzhi Tencent Technology in 2020, where it held a 20% stake.
Tencent’s cumulative ownership in Wangyuan now surpasses 94%, providing the company with direct access to the Beijing studio’s intellectual property, development capabilities, and distribution networks.
Meng Xianming, the founder of Wangyuan, will continue to serve as the chief executive, with Tencent reportedly granting the studio autonomy to pursue its game development endeavors.
Collaboratively, Tencent and Wangyuan are already working on a new RPG project titled Ash Echoes.
While Swords of Legends may be lesser-known in Western markets, it enjoys immense popularity in China, boasting over six million units sold as of July 2021 and even inspiring a Chinese television series.
For Western audiences, the MMO spin-off, Swords of Legends Online, published by Gameforge, might ring more familiar. However, it ceased operation last year following a mutual decision between Gameforge and Wangyuan.
Despite its recent scaling back of investments in 2023, Tencent remains a dominant force in the gaming industry, solidifying its position as a major player through strategic acquisitions and partnerships.
