Chinese gaming company Tencent has acquired a 5 percent share in Paradox Interactive, ahead of the latter company's initial public offering. Tencent will be acquiring 5.28 million shares at an initial price of 33 Swedish Krona ($3.98) a pop, meaning its total investment comes to 174.24 million SEK ($21 million). Following the IPO, Paradox CEO Fredrik Wester and investment firm Spiltan will retain controlling interest, with 33.3 percent and 30.5 percent of shares, respectively.
"As China's game market further develops, players will advance to more sophisticated and complex genres such as grand strategy and simulation games," Tencent head of games publishing Steven Ma said in the press release. "I have spent many hours in Hearts of Iron 2, and believe our rich social resources can help Paradox build up loyal fan bases in China."
"It has always been very important for us that any partners we bring on board can contribute in a unique and attractive way to Paradox and have a long term commitment to the company," Wester added. "Tencent certainly fit the bill with their network and know-how of a market where we are not yet present and we believe Tencent will be able to add great value to Paradox in near and long term."
This is not the first Western company that Tencent has invested in. The company outright acquired League of Legends developer Riot Games in December of last year. Prior to that, it had made smaller investments in Epic Games, Activision Blizzard, Robot Entertainment, Glu Mobile, and more. Currently, Tencent has yet to make any significant moves or changes in how Riot operates, so this looks to be a good move for Paradox, opening the company up to a new market.
Paradox recently released Stellaris, the company's first foray into the future. Previously, Paradox's grand strategy titles have all be based in history, including Europa Universalis, Hearts of Iron, and Victoria.