Image: Rockstar Games

Sources with Bloomberg have revealed that Tencent is working to secure a massive $6 billion loan to acquire what TMT Finance (via Seeking Alpha) suggests is a major gaming company. While TMT failed to confirm what this mysterious party might be, the amount of money involved and previous insider speculation has led some to believe that Tencent is interested in acquiring Rockstar Games and 2K Games’ parent company and publisher, Take-Two Interactive.

“Tencent is considering raising several billion dollars in a ‘club’ loan deal and is holding talks with lending banks as the company looks at a potential acquisition of a gaming business,” Seeking Alpha wrote. “Tencent hasn’t identified the gaming company it’s targeting, though its expected to be U.S. or South Korean, TMT reported, citing a source familiar.”

Lending credence to the possibility of a Take-Two buyout is popular GTA Forums insider Razed-, who confirmed that there is some level of truth regarding the acquisition rumors. Despite the possibility of Tencent planning what would likely be a hostile takeover, s/he has told GTA fans not to worry about it.

“I do not know the specifics but I can confirm that the recent rumors regarding acquisition have some truth to them,” Razed- wrote in a post echoed by r/GamingLeaksAndRumours. “There has been some chatter within a very small circle of the community over the last three months regarding this stuff. I’m really interested to see if this will go somewhere…. but I wouldn’t worry about it if I were you. Rockstar will continue making great games no matter what.”

Games industry analyst Daniel Ahmad also noted that the money that Tencent is raising has nothing to do with its recent acquisition of Don’t Starve developer Klein Entertainment, which we reported on yesterday. Other insiders have theorized that Take-Two could escape a potential takeover by cozying up with Sony instead.

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21 Comments

  1. What could possibly go wrong if Tencent took over TakeTwo :rolleyes: Would my social score be enough to play the new GTA?

  2. Getting damn tired of seeing Tencent’s name in gaming-related news. I wish they would just disappear, never to be seen or heard from again. F*cking @sswipes.

  3. So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?
    That question in only half snarky, I really don’t know . I do know threads like this do go a similar way, with fairly strong negative comments, but no actual specific grivances.
    ‘ They are Chinese’ is a weak one at best be of course… be that we should all then accept everyone can play that game, and say ‘ they are US Americans’ and some such.. meh

  4. [QUOTE=”Paul_Johnson, post: 28170, member: 2″]
    What could possibly go wrong if Tencent took over TakeTwo :rolleyes: Would my social score be enough to play the new GTA?
    [/QUOTE]
    Long as you praise Xi, then you’re good lol.

  5. We had a number of stories in 2020 regarding numerous companies making huge buys to acquire various studios. This seems plausible since those with deep pockets are in a position to take advantage of various economic factors in play due to COVID-19. If not Tencent, then there’s probably someone else in the wings we haven’t heard about yet. Definitely looks like all the big companies are trying to shore up their developer studios.

    Edit: Check here for those stories with “[URL=’https://www.thefpsreview.com/?s=acquire’]acquire[/URL]” in the name and you’ll see what I mean.

  6. I don’t think 6B is enough to get Take Two – I think GTAV has made that much alone.

    [URL=’https://www.google.com/amp/s/www.gamesindustry.biz/amp/2018-04-09-gta-v-is-the-most-profitable-entertainment-product-of-all-time’]More, actually[/URL], this was from 2018 and it hasn’t really slowed down any

  7. [QUOTE=”Brian_B, post: 28194, member: 96″]
    I don’t think 6B is enough to get Take Two – I think GTAV has made that much alone.

    [URL=’https://www.google.com/amp/s/www.gamesindustry.biz/amp/2018-04-09-gta-v-is-the-most-profitable-entertainment-product-of-all-time’]More, actually[/URL], this was from 2018 and it hasn’t really slowed down any
    [/QUOTE]
    Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.

  8. [QUOTE=”Uvilla, post: 28177, member: 397″]
    So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?
    [/QUOTE]

    The fact that they are Chinese is not the problem. The Chinese are a great people with tremendous history and culture.

    The problem is the current regime in China, a strict dictatorship that disappears dissidents, enforces political censorship and actively pursues industrial espionage. China does not have a free and open market. Absolutely EVERYTHING is controlled by the party. If the party wishes something, you have to do it, or you get shut down, expelled from the country (if a foreigner) or disappeared as a dissident (if Chinese) without any legal recourse. Enforcing their political agenda, and supporting espionage activities is just an order from an intelligence officer away.

    Expect any future titles from whatever studio they buy to be censored from any criticism of China or authoritarian regimes in general, and maybe even contain active propaganda against the west, trying to undermine Democracies based on Freedom in general. It can be very dangerous to give a totalitarian regime entryways into our culture and entertainment as I can GUARANTEE it will be used to try to undermine the west from within, feeding players story lines that make young kids critical of that which we hold the most dear, and convincing them that single party rule is a good and viable alternative. I’d argue this is extremely dangerous.

    …and what if while you are playing your game, it is scanning through your documents folder and uploading anything it sees as relevant workplace documents from that time you worked from home using your home PC to the Chinese government, which will then turn around and subsidize Chinese knockoffs of the technology and dump it on the international market, driving your workplace out of business, just like they did with Solyndra.

    Until China becomes a democratically ruled multi-party state, that has a responsible presence on the international market, and respects international intellectual property norms absolutely everything from China should be considered suspicious.

    The Chinese people are great. Their government is dangerous.

    [IMG]https://media3.giphy.com/media/xT0GqHl3WVxCNdrDmU/giphy.gif[/IMG]

  9. [QUOTE=”Brian_B, post: 28194, member: 96″]
    I don’t think 6B is enough to get Take Two – I think GTAV has made that much alone.

    [URL=’https://www.google.com/amp/s/www.gamesindustry.biz/amp/2018-04-09-gta-v-is-the-most-profitable-entertainment-product-of-all-time’]More, actually[/URL], this was from 2018 and it hasn’t really slowed down any
    [/QUOTE]

    [QUOTE=”Armenius, post: 28198, member: 180″]
    Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
    [/QUOTE]

    Agreed. If the takeover is hostile, it will need lots of cash in order to buy stock.

    The question is how much cash Tencent has on hand. Everyone is assuming that the $6B is the totality of what they are spending. Maybe it is supplemental cash to the cash they already have on hand, and they plan on spending a lot more?

  10. [QUOTE=”Zarathustra, post: 28213, member: 203″]
    Agreed. If the takeover is hostile, it will need lots of cash in order to buy stock.

    The question is how much cash Tencent has on hand. Everyone is assuming that the $6B is the totality of what they are spending. Maybe it is supplemental cash to the cash they already have on hand, and they plan on spending a lot more?
    [/QUOTE]
    According to this Tencent Holdings has $37B USD of cash on hand.

    [URL]https://www.macrotrends.net/stocks/charts/TCEHY/tencent-holding/cash-on-hand[/URL]

  11. [QUOTE=”Armenius, post: 28214, member: 180″]
    According to this Tencent Holdings has $37B USD of cash on hand.

    [URL]https://www.macrotrends.net/stocks/charts/TCEHY/tencent-holding/cash-on-hand[/URL]
    [/QUOTE]

    Yeah, so max cash available is $37B + $6B in loan, so that’s $43B. Now they are unlikely to spend ALL of their cash, as you always need to keep some safety margin for operating, but it does seem like they have more than enough cash to buy the likes of Take Two outright, if the $24B figure above is accurate.

  12. [QUOTE=”Armenius, post: 28198, member: 180″]
    Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
    [/QUOTE]
    Good to know.

  13. [QUOTE=”hubaduba, post: 28229, member: 1423″]
    They don’t need $24 billion. They only need enough to acquire 51% of the stock.
    [/QUOTE]

    Depends on what their intent is. True, they can gain a controlling stake at 50.01% of voting shares, but maybe they are interested in all of the revenues and merging the company into their own.

  14. [QUOTE=”Zarathustra, post: 28230, member: 203″]
    Depends on what their intent is. True, they can gain a controlling stake at 50.01% of voting shares, but maybe they are interested in all of the revenues and merging the company into their own.
    [/QUOTE]
    Hmm.. thinking about this some more.

    Tencent is huge. Like really big… the largest gaming company globally (and has been for a few years), and one of the top 10 corporations across all markets by many metrics.

    They don’t tend to outright buy everything. They have their fingers in a lot of pies — a lot of companies where they only own partial stakes. They don’t tend to need to own a company outright, but that being said, they have no problem doing so. Not sure what the distinction is between where they just invest into, versus controlling interest. At it’s heart, Tencent really is just a conglomerate holding company – they don’t really produce anything of their own, but rather they just throw a lot of capital around to other companies that do.

    Really, if Tencent wanted to outright buy Take Two or EA, they could. I don’t know that they would necessarily want to though. They already have minor parts of Activision/Blizzard and Ubisoft, and a large stake in Epic Games.

    Gotta say, them raising capital is curious, but I have no idea what they would do with it. They have interests beyond just gaming companies as well, so it doesn’t necessarily need to be a gaming-oriented pursuit.

    Taken from Wikipedia, so fwiw:

    [LIST]

  15. Full ownership of [URL=’https://en.wikipedia.org/wiki/Riot_Games’]Riot Games[/URL], the American developer of [I][URL=’https://en.wikipedia.org/wiki/Valorant’]Valorant[/URL][/I] and [I][URL=’https://en.wikipedia.org/wiki/League_of_Legends’]League of Legends[/URL][/I][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-154′][154][/URL]
  16. Full ownership of Norwegian publisher [URL=’https://en.wikipedia.org/wiki/Funcom’]Funcom[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-155′][155][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-156′][156][/URL]
  17. Full ownership of [URL=’https://en.wikipedia.org/wiki/Hong_Kong’]Hong Kong[/URL] based company [URL=’https://en.wikipedia.org/wiki/Leyou’]Leyou[/URL], the parent company of [URL=’https://en.wikipedia.org/wiki/Digital_Extremes’]Digital Extremes[/URL], [URL=’https://en.wikipedia.org/wiki/Splash_Damage’]Splash Damage[/URL], and other development and publishing studios.[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-Batchelor-152′][152][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-157′][157][/URL]
  18. Full ownership of Swedish developer Sharkmob, founded in 2017 by ex-[URL=’https://en.wikipedia.org/wiki/Ubisoft’]Ubisoft[/URL] developers and fully acquired by Tencent in 2019.[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-158′][158][/URL]
  19. 80% ownership in the New Zealand company [URL=’https://en.wikipedia.org/wiki/Grinding_Gear_Games’]Grinding Gear Games[/URL], the developers of the game [I][URL=’https://en.wikipedia.org/wiki/Path_of_Exile’]Path of Exile[/URL][/I].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-159′][159][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-160′][160][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-161′][161][/URL]
  20. Approximately 84% ownership in [URL=’https://en.wikipedia.org/wiki/Finland’]Finnish[/URL] mobile game developer [URL=’https://en.wikipedia.org/wiki/Supercell_(video_game_company)’]Supercell[/URL], makers of [I][URL=’https://en.wikipedia.org/wiki/Clash_of_Clans’]Clash of Clans[/URL][/I] and [I][URL=’https://en.wikipedia.org/wiki/Clash_Royale’]Clash Royale[/URL][/I][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-162′][162][/URL]
  21. 40% ownership of American developers [URL=’https://en.wikipedia.org/wiki/Epic_Games’]Epic Games[/URL], the developer of popular online game [I][URL=’https://en.wikipedia.org/wiki/Fortnite’]Fortnite[/URL][/I] and widely used [URL=’https://en.wikipedia.org/wiki/Proprietary_software’]proprietary[/URL] [I][URL=’https://en.wikipedia.org/wiki/Unreal_Engine’]Unreal[/URL][/I] [URL=’https://en.wikipedia.org/wiki/Game_engine’]game engine[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-Kerr-163′][163][/URL]
  22. 20% ownership of [URL=’https://en.wikipedia.org/wiki/Japan’]Japanese[/URL] publisher and developer [URL=’https://en.wikipedia.org/wiki/Marvelous_(company)’]Marvelous[/URL] which owns [URL=’https://en.wikipedia.org/wiki/G-Mode’]G-Mode[/URL] and the majority of [URL=’https://en.wikipedia.org/wiki/Data_East’]Data East[/URL]’s [URL=’https://en.wikipedia.org/wiki/Intellectual_properties’]intellectual properties[/URL] including: [I][URL=’https://en.wikipedia.org/wiki/BurgerTime’]BurgerTime[/URL][/I], [I][URL=’https://en.wikipedia.org/wiki/Joe_%26_Mac’]Joe & Mac[/URL][/I], and [I][URL=’https://en.wikipedia.org/wiki/Magical_Drop’]Magical Drop[/URL][/I] franchises.[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-164′][164][/URL]
  23. 18.6% ownership of Chinese company [URL=’https://en.wikipedia.org/w/index.php?title=IDreamSky&action=edit&redlink=1′]iDreamSky[/URL], which mainly develops and publishes [URL=’https://en.wikipedia.org/wiki/Mobile_games’]mobile games[/URL] for the Chinese market.
  24. 5% ownership of Chinese company Century Huatong, which operates games developed by [URL=’https://en.wikipedia.org/wiki/FunPlus’]FunPlus[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-165′][165][/URL] Tencent became a shareholder through an investment in Century Huatong’s subsidiary [URL=’https://en.wikipedia.org/wiki/Shengqu_Games’]Shengqu Games[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-166′][166][/URL]
  25. 17.66% ownership of South Korean mobile developer [URL=’https://en.wikipedia.org/wiki/Netmarble’]Netmarble[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-167′][167][/URL]
  26. Approximately 15% ownership of American [URL=’https://en.wikipedia.org/wiki/Mobile_game’]mobile game[/URL] developer [URL=’https://en.wikipedia.org/wiki/Glu_Mobile’]Glu Mobile[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-gibiz_5%_paradox-168′][168][/URL]
  27. 13.54% ownership of South Korean company [URL=’https://en.wikipedia.org/wiki/Kakao’]Kakao[/URL], the parent company of South Korean publisher [URL=’https://en.wikipedia.org/wiki/Kakao_Games’]Kakao Games[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-169′][169][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-170′][170][/URL]
  28. 9% ownership in UK developer [URL=’https://en.wikipedia.org/wiki/Frontier_Developments’]Frontier Developments[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-171′][171][/URL]
  29. 5% ownership of American [URL=’https://en.wikipedia.org/wiki/Holding_company’]holding company[/URL] [URL=’https://en.wikipedia.org/wiki/Activision_Blizzard’]Activision Blizzard[/URL], the parent company of [URL=’https://en.wikipedia.org/wiki/Activision’]Activision[/URL], [URL=’https://en.wikipedia.org/wiki/Blizzard_Entertainment’]Blizzard[/URL] and [URL=’https://en.wikipedia.org/wiki/King_(company)’]King[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-gibiz_5%_paradox-168′][168][/URL]
  30. 5% ownership of Swedish publisher [URL=’https://en.wikipedia.org/wiki/Paradox_Interactive’]Paradox Interactive[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-gibiz_5%_paradox-168′][168][/URL]
  31. 5% ownership in France’s [URL=’https://en.wikipedia.org/wiki/Ubisoft’]Ubisoft[/URL], purchased from [URL=’https://en.wikipedia.org/wiki/Vivendi’]Vivendi[/URL] following Vivendi’s failed attempt to buy out Ubisoft in March 2018[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-172′][172][/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-173′][173][/URL]
  32. 1.5% ownership of South Korean company [URL=’https://en.wikipedia.org/wiki/Bluehole_(company)’]Bluehole[/URL], the publisher of [URL=’https://en.wikipedia.org/wiki/PlayerUnknown%27s_Battlegrounds’]PlayerUnknown’s Battlegrounds[/URL].
  33. Majority ownership in Switzerland-based mobile game developer [URL=’https://en.wikipedia.org/wiki/Miniclip’]Miniclip[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-174′][174][/URL]
  34. Capital Investment in Japanese developer [URL=’https://en.wikipedia.org/wiki/PlatinumGames’]PlatinumGames[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-175′][175][/URL]
  35. Minority share in German developer [URL=’https://en.wikipedia.org/wiki/Yager_Development’]Yager Development[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-176′][176][/URL]
  36. Minority ownership of French mobile game developer [URL=’https://en.wikipedia.org/wiki/Voodoo_(company)’]Voodoo[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-177′][177][/URL]
  37. Major share in Sweden’s 10 Chambers Collective, the developer of [URL=’https://en.wikipedia.org/wiki/GTFO_(video_game)’]GTFO[/URL][URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-178′][178][/URL]
  38. Majority ownership of Canadian [URL=’https://en.wikipedia.org/wiki/Klei_Entertainment’]Klei Entertainment[/URL].[URL=’https://en.wikipedia.org/wiki/Tencent#cite_note-179′][179][/URL]
  39. [/LIST]

  40. [QUOTE=”Armenius, post: 28198, member: 180″]
    Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
    [/QUOTE]
    $6 billion is just the loan, doesn’t mean the loan covers the whole acquisition.

  41. [QUOTE=”Uvilla, post: 28177, member: 397″]
    So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?
    That question in only half snarky, I really don’t know . I do know threads like this do go a similar way, with fairly strong negative comments, but no actual specific grivances.
    ‘ They are Chinese’ is a weak one at best be of course… be that we should all then accept everyone can play that game, and say ‘ they are US Americans’ and some such.. meh
    [/QUOTE]
    Entertainment products are already being changed, and nerfed to please the chienese government censors, how much worse that can be when the publisher is actually owned by a chinese company, that fully reports to their government?

    It’s not about being chinese, it’s about their government and regime. Say if tencent was iranian or indonesian it would be just as bad, or worse. It’s not about nationality it’s about who pulls the strings.

  42. [QUOTE=”MadMummy76, post: 28280, member: 1298″]
    Entertainment products are already being changed, and nerfed to please the chienese government censors, how much worse that can be when the publisher is actually owned by a chinese company, that fully reports to their government?

    It’s not about being chinese, it’s about their government and regime. Say if tencent was iranian or indonesian it would be just as bad, or worse. It’s not about nationality it’s about who pulls the strings.
    [/QUOTE]
    Yes, this is about the Chinese getting their tentacles into every global piece of culture to influence the world. I don’t want to get too soapbox, here, but we have been in a cold war with China for at least 30 years now. It’s just playing out through business instead militarily.

  43. [QUOTE=”Eduardo_Domingot, post: 28178, member: 246″]
    Long as you praise Xi, then you’re good lol.
    [/QUOTE]

    [QUOTE=”Eduardo_Domingot, post: 28178, member: 246″]
    Long as you praise Xi, then you’re good lol.
    [/QUOTE]

    Whatever you do, don’t post pictures of Winnie the Pooh when talking about President Xi! :p

    [ATTACH type=”full”]796[/ATTACH]

    [ATTACH type=”full”]797[/ATTACH]

    I guess I didn’t want to go to China any time soon anyway :p

  44. So does this mean there won’t be a winnie costume in GTA VI?
    If it was me I’d have banned piglet instead. That character irritated me to no end since childhood.

  45. 100% will not buy any new games from rockstar if this happens, why you may ask? Well the long list of movies the Chinese government(CCP) has made directors “edit” to better depict the Chinese regime(Red Dawn comes too mind)

    Not only is the CCP a malicious group preying on the people of there own country, they also want too play leader of what? i know it cant be diversity because you can actually find businesses in china restricting access just based on, oh i dont know the basics skin color, religion or creed. I get tencent has a big part in a lot of the Hollywood industries, but lets be honest gaming is the last place we need too see it.

    One more thing. SAVE THE FALUN GONG. FREE THE UYGHURS. STOP GENOCIDE!

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