Tencent takes minority stake in Skydance Media
Reports suggest the stake in Skydance Interactive parent is worth $100 million
Tencent has made a strategic investment in Skydance Media, the company that houses the AAA virtual reality studio Skydance Interactive.
The value of the investment was not disclosed by either party, but The Los Angeles Times' sources suggest a $100 million investment for between five and ten per cent of the company.
"We are thrilled and honored to be entering into a strategic partnership with Tencent, whose global reach and position within the Chinese marketplace is truly unmatched", said David Ellison, founder and CEO of Skydance Media, in a statement.
"Skydance has experienced a tremendous amount of growth since our inception in 2010, and we're excited that our next phase of expansion will be in partnership with a company that shares our vision for where entertainment is heading."
Skydance was founded in 2010, but its headcount has grown from 15 people to more than 150 people in the last four years alone. As a company, it makes products for several entertainment industries, the most popular of which are film and television properties in the science fiction and fantasy genres. It is currently in production on the new Terminator and Mission Impossible films, for example, and it owns the rights to Star Trek.
A statement from Tencent chief strategy officer James Mitchell suggested that the Chinese company's main interest is in Skydance's film and television products, which are in genres that are, "particularly popular in China." However, Skydance Interactive, which is working on a VR game based on The Walking Dead, will be able to benefit in much the same way.
Skydance Interactive was formed after the acquisition of The Workshop Entertainment in May 2016. Last year, it appointed Survios founder Chris Hewish as its executive vice president.