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Tencent Acquires Majority Stake In Spec Ops Developer Yager

It’s been announced that Chinese tech company Tencent has acquired a majority stake in German developer Yager, most well-known for Spec Ops: The Line.

Tencent had previously invested an undisclosed amount in Yager back in February 2020 that allowed the studio to scale up production and remain independent. The company has now acquired a majority stake, meaning that Tencent is now Yager’s parent company and has a say on how Yager will operate going forward. However, Yager’s managing director Timo Ullman has welcomed the deal:

“For us, the majority stake means we have the resources to expand the studio and the games in development,” explains Ullman. “With Tencent, we now have a powerful, globally operating partner to support our strategic plans for Yager.”

Yager’s latest title, The Cycle, is a free-to-play shooter, and the studio’s decision to allow Tencent to invest further signals that the partnership is working well. Tencent has a number of free-to-play titles under its belt including the massively popular League of Legends as well as the upcoming Pokemon Unite. Tencent’s experience in free-to-play titles, as well as its influence in China, is likely the driving force behind Yager’s decision to continue working with the company.

However, this is likely more grim news for the Tencent critics out there who are worried about the company’s ever-growing investment in studios outside of China. The company has minority stakes in a dizzying number of studios including some as big as Activision Blizzard down to some as small as Life is Strange developer Dontnod Entertainment.

The company is even working with some pretty prestigious franchises, one of which is the System Shock franchise which it acquired in May last year.

Thankfully, it seems like several developers actually appreciate the deals and funds that come with them. Tencent recently acquired a majority stake in Don’t Starve developer Klei Entertainment and the studio claimed that it chose Tencent due to its hands-off approach and willingness to let Klei do its own thing.

Yager’s acquisition is likely a similar situation, so at least some good is coming from these deals, even if Tencent’s expansion outside of China is getting more and more aggressive.

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