Tencent Secures Majority Stake in Wangyuan Shengtang, Developer of Swords of Legends Series

In a significant move, Tencent has substantially increased its ownership in Wangyuan Shengtang, the renowned Beijing-based developer of the action-RPG series Swords of Legends. This series is also known as 'Gujian' in China. Through its investment arm, Guangxi Tencent Venture Capital, the company acquired a 100% stake in Dongtai Yunpeng Culture Co. Dongtai previously held a 43% stake in Wangyuan, while Guangxi Tencent Venture Capital boosted its own stake from 23% to 31%. Prior to this, Tencent already possessed a 20% stake in Wangyuan through Linzhi Tencent Technology, which initially invested in the developer in 2020. As a result, Tencent now holds more than a 94% stake in Wangyuan, providing the company with access to the studio's intellectual property, development capabilities, and its marketing and distribution networks. The founder of Wangyuan, Meng Xianming, will continue to serve as the chief executive, with Tencent reportedly allowing the studio to maintain creative control over its game development. Tencent and Wangyuan are currently collaborating on a new RPG titled Ash Echoes. Although the Swords of Legends series may not be widely recognized in the West, it has achieved immense popularity in China, with over six million units sold as of July 2021, and has even been adapted into a Chinese television show. Western gamers may be more familiar with the MMO spin-off, Swords of Legends Online, which was published by Gameforge but shut down last year due to a mutual decision between the publisher and Wangyuan. With this move, Tencent reinforces its position as a major investor in the gaming industry, despite a recent report indicating a significant reduction in its investments in 2023.