Rumor: Tencent Completes Gamegoo Acquisition
DoNews, 11/11/10
An industry source revealed today that Shenzhen-based internet company Tencent (0700.HK) has completed its strategic acquisition of Beijing-based browser game developer Gamegoo for an as-yet undisclosed sum.
Gamegoo was founded in 2006 with early investment from former Kingsoft (3888.HK) senior VP, Linekong founder, and angel investor Wang Feng. In 2008, the company received joint investment from Disney-related fund Steamboat Ventures and Qiming Venture Partners.
Gamegoo currently has six browser games: Might and Hero, Huashan Lunjian, Wending Fengshen, Mohuan San Guo Zhi, Chuhan Fengyun, and Qi Xiong Zheng Ba. Tencent operates the last of these, Qi Xiong Zheng Ba, which brings in a rumored RMB 70 mln in revenues each month. While Tencent has disclosed no details of its earnings for the game, it did say in its financial report that the game's performance "had initially exceeded expectations following its August announcement."
The performance of Qi Xiong Zheng Ba was reportedly what spurred Tencent to begin the talks with Gamegoo that led ultimately to its acquisition of a majority stake in the company, and to investor Wang Feng and others cashing out of the company. As yet there has been no official confirmation of the reports.
Editor's Note: For more background on this topic, please see "Qiming Sells Gamegoo Stake to Tencent" MD 9/17/10 issue.
Keywords: Chuhan Fengyun Mohuan San Guo Zhi Wending Fengshen Huashan Lunjian browser game Might and Hero Wang Feng Disney Internet Tencent Qiming Steamboat Ventures 0700.HK Gamegoo Qi Xiong Zheng Ba online gaming revenue M&A
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