Games

Supercell Looking To Sell 'Clash Of Clans' To Tencent? Figure Reaches $6.6B

By Alvin Elfwine , Jun 17, 2016 05:00 AM EDT

If there is a mobile game that is making huge waves today, it is no other than "Clash of Clans" from Supercell. It is why Tencent Holdings Ltd. is so interested in buying a huge chunk of the studio's current stake. And if the deal pushes through, a figure as huge as $6.6 billion is at hand.

According to Reuters, the giant social network and entertainment company from China is looking to acquire a stake percentage of 73.2 from Supercell. The said percentage is valued at over $6.6 billion, giving the developers of "Clash of Clans" an offer they cannot simply refuse.

If the said deal happens, analysts believe that Tencent could do a fantastic job in leveraging the research and development capabilities of the mobile game. In fact, the revenue they can get from "Clash of Clans" is likely to be boosted.

The colossal company has been known to be a great investor in the gaming industry -- either through minority stakes or partnerships. Currently, Tencent owns Riot Game's "League of Legends" and even has a stake in "Call of Duty" publisher Activision.

The New York Times notes that the "Clash of Clans" deal is synonymous to China becoming a behemoth in digital gaming. In fact, the aforementioned company is just one of the many giants next to Baidu and Alibaba.

Tencent has a market value of nearly $211 billion. It controls the titular messaging service in the country called WeChat. But of course, it has a couple of online multiplayer games (all of which are hosted via its QQ portal) to add to its resume.

Buying "Clash of Clans" from Supercell will give Tencent a dominant presence in the mobile gaming market. After all, it currently has a huge following, especially with being the most downloaded game in Android and iOS.

Online gaming has since been Tencent's main source of cash. The company has reportedly earned 43 percent of its total revenue, followed by its scope in both gaming and advertising businesses.

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