Tencent has reportedly made a shift in its acquisitions strategy with eyes on snapping up bigger stakes in companies outside of China, according to people familiar with the matter.
As per a report from Reuters, the firm aims to shift from its position as a "passive financial investor" in mainland businesses to a majority stakeholder in overseas firms, notably in "gaming assets in Europe."
Tencent is also looking to acquire European assets "related to the so-called Metaverse," though no further details were given.
The company told Reuters that it has been investing overseas "long before any new regulations" had hit the Chinese market, adding that it looks for "innovative companies with talented management teams."
This strategy lines up with recent news that Tencent had increased its investment into Ubisoft – a €300 million cash injection saw the tech firm take a 49.9% stake in Guillemot Brothers Limited, which owned 13% of Ubisoft's shares prior to the deal.
In its August financial report, Tencent reported its first ever revenue drop, citing a quieter release slate and an "industry-wide "post-pandemic digestion period." A country-wide freeze on new video game approvals has also impacted the firm's ability to publish new games in China in the last year.