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Tencent just bought 'Clash of Clans' maker Supercell for $8.6 billion
Wow. This is huge. Supercell, the game developer behind insanely popular money maker games including Clash of Clans, Clash Royale, Hay Day and Boom Beach, is being acquired by Chinese conglomerate Tencent for $8.6 billion. To action the purchase, Tencent will acquire 84% of shares in the company (including Japanese investment company Softbank’s existing 73% share). Despite the acquisition, Supercell will continue to operate independently from its home base in Helsinki. This new deal values the company at $10.2 billion.
To give you an idea of just how valuable Supercell is, the company recently announced that 100 million people play their games every single day. Every single day. That’s insane. As is the amount of money Supercell rakes in from its various titles: Supercell reported revenue of $2.3 billion in 2015 with profits of $964 million. As you may recall, Supercell made headlines mid-year when it was reported the company made $5 million a day from Clash of Clans alone.
Supercell made headlines in 2015 when it was reported the company made $5 million a day from Clash of Clans alone.
One year before, in 2014, things were still ramping up to their eye-popping current status, but Supercell still took $1.7 billion in revenue and made half a billion dollars in profit. Not bad for a company founded in 2010. Fast forward to today and a $10 billion valuation doesn’t seem at all out of context. Supercell will only grow further now with Tencent’s access to the massive Chinese market.
In case you’re wondering why Tencent bought a controlling stake in Supercell, you might recall that it also bought the game developer behind League of Legends – Riot Games – last year. Tencent also owns stakes in the game studios behind World of Warcraft and Gears of War as well. It’s purchase of Supercell not only makes Supercell the most valuable mobile game company in the world, but it also makes Tencent a even greater force to be reckoned with in the gaming arena.
The sale is expected to close in Q3, 2016 pending regulatory oversight.
Do you play Supercell games? How much do you spend on them?