League of Legends Parent Company Tencent Seeks $2 Billion in Funding
Tencent Holdings Limited, parent company of League of Legends, is reportedly in talks to raise at least $2 billion in funding for unknown reasons.
According to Reuters, at least six major banks have exclaimed interest in joining the Chinese conglomerate in its new venture. However, it remains to be seen what the tech giant plans to do with the funds once they are raised.
Based on its recent investment drive, Tencent is probably getting ready to make another acquisition and convince a new firm to stand under its banner.
The last time it raised a debt funding in the billions was in June when it bought a controlling interest in Supercell, a Finnish mobile game developer with a number of successful hitters such as Clash of Clans and Clash Royale. The $6.6 billion deal was the largest ever recorded in the video games market to date.
In 2011, just over two years after the launch of League of Legends, Tencent moved in to acquire a majority stake in Riot Games for approximately $400 million. By the end of 2015, the Chinese company acquired the remaining equity to become the sole owner of the popular free-to-play title.
Tencent is the largest video games investment group in the world, with sizable shares in a number of prominent studios such as Activision Blizzard, Epic Games, Discord, Garena, Robot Entertainment, Glu Mobile, Pocket Gems, and Longzhu. There are many more, covering both gaming as well as esports names.
Its profound presence in the market generated over 10 percent of the global video games revenue last year, a healthy part of which was League of Legends and its ever-green supply of microtransactions.