Video game developer bought for $100m

Hong Kong-listed Tencent Mobility was granted Overseas Investment Office approval to buy up to 100 per cent of video game developer Grinding Gear Games for more than $100 million.

Tencent Mobility — an online communication, advertising, and gaming service provider — was granted consent to acquire up to 100 per cent of the shares in Grinding Gear Games, 80 per cent upfront and the remaining 20 per cent over approximately six years, a summary of the decision released yesterday said.

While no amount was disclosed, the need for OIO approval was triggered because it exceeds $100 million.

“Tencent Mobility Ltd has satisfied the OIO that the individuals who will control the investment have the relevant business experience and acumen and are of good character. Tencent Mobility Ltd has also demonstrated financial commitment to the investment,” the OIO said.

According to the OIO, the shareholders of Grinding Gear Games “wish to realise the value of their investment and to allow the company to grow, by utilising the international connections of Tencent Mobility.”

Tencent Mobility is majority owned by Hong-Kong investors and is the world’s largest online games company. Its t otal revenue in the first quarter of 2018 was US$11.7 billion.

Auckland- based Grinding Gear Games is best known for creating the “Path of Exile” online video game that has around two million players signed up.