Tencent investment numbers plummet in 2023

In a notable shift, Chinese internet and gaming giant Tencent drastically reduced its investment activities last year. According to a report by the South China Morning Post, the company entered into 39 investment agreements with 37 businesses, focusing primarily on the video game, healthcare, and corporate services sectors, with seven of these investments targeting AI startups. This represents a 59% decrease from the 95 deals made in 2022 and a staggering 87% drop from the 299 deals made in 2021. This trend is part of a broader pattern among China's largest corporations, which have significantly cut back on their investments in 2023, with Tencent experiencing the most substantial reduction in deal numbers. As a major player in the gaming industry, Tencent's investments in this sector have been particularly noteworthy. Last year's gaming investments included the establishment of a new UK studio, Lighthouse Games, and the acquisition of a majority stake in Techland, the developer of Dying Light. In addition to its in-house game development studios, Tencent's portfolio includes ownership of Riot Games, Sharkmob, Funcom, Sumo Group, and the parent company of Splash Damage and Digital Extremes, Leyou. The company also holds minority and majority stakes in numerous gaming firms, including Miniclip, Fatshark, Supercell, Yager Development, Klei Entertainment, Turtle Rock Studios, Tequila Works, Epic Games, Don't Nod, From Software, Ubisoft, Frontier Developments, and Remedy Entertainment. However, like many industry players, Tencent has been forced to scale back its gaming operations, including the closure of its US-based Team Kaiju at the end of last year.