The development studio behind the mobile frenzy "Clash of Clans" was just bought by a Chinese Internet giant Tencent Holdings for a whopping amount of $8.6 Billion. Supercell has just been valued at $10.2 billion as a result of the acquisition.
Supercell Doubles Value
According to Polygon, Supercell was valued at $5.25 billion last year. This clearly shows that the game developer has almost doubled their value this year. This is most certainly brought by the deal with Tencent Holdings.
Tencent Holdings is known for their controlling stake at Riot Games' "League of Legends." Their acquisition of Supercell will be done in stages rather than full take over. The full purchase of Supercell is expected to be completed by third quarter of the fiscal year.
Aside from Supercell, Tencent Holdings is also reported to acquire the majority stakes from Japanese Telecommunications Company called Softbank.
The Booming Mobile Game Industry
With the purchase, Tencent Holdings will also acquire Supercell's popular games like "Clash of Clans," "Hay Day," "Clash Royale" and "Boom Beach." Based on revenue, these games all belong to the top 20 in the App store in iOS last month.
For years now, mobile gaming has grown at an unprecedented rate, becoming a big player in the gaming industry. With the acquisition of Supercell, this clearly shows everyone how big the market is.
Arstechnica said that Supercell sold for almost twice as much as the combined purchase price of YouTube and LucasFilm.
More so, Supercell is also worth more than twice as much as both Mojang (acquired by Microsoft for $2.5 billion) and Oculus (acquired by Facebook for $2 billion) purchase price combined.
The simple explanation for this massive stake is the fact that so many people worldwide have smart phones. Most of them are willing to try free game titles. In fact, Supercell claims more than 100 million daily players for its four games.
Not into "Clash of Clans?" Get a glimpse on how the mobile app works in the video below.