Tencent has grabbed a controlling stake in Chinese studio Wangyuan Shengtang.
As reported by the South China Morning Post (SCMP), Wangyuan was formed in 2009 and is best known for working on the Swords of Legends franchise.
Tencent made the purchase through its Guangxi Tencent Venture Capital subsidiary as part of a multi-pronged investment.
First, the company fully acquired Dongtai Yunpeng Culture Co. Dongtai, which owns 43 percent of Wangyuan. It then increased its own stake in Wangyuan to 31 percent from 23 percent.
Notably, Tencent already held another 20 percent stake in Wangyuan through a subsidiary called Linzhi Tencent Technology. That all means Tencent now owns roughly 94 percent of Wangyuan, allowing the company to take charge.
One source told SCMP that Wangyuan CEO and founder Meng Xianming will continue to lead the studio under Tencent.
Tencent and Wangyuan failed to comment on the matter after being contacted by SCMP.
The news comes shortly after Tencent CEO Pony Ma told attendees at an annual meeting that it seemed as if the company’s game business “achieved nothing” in 2023. That’s despite the conglomerate owning in major studios like Epic Games, Riot Games, Remedy, Techland, and more.
There have also been reports that indicate Tencent has struggled to get other key projects, such as mobile adaptations of Nier and Elden Ring, off the ground.