Tencent Reportedly Seeking $6 Billion Loan for Major Games Company Acquisition (Rockstar’s Take-Two Interactive Rumored)

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Sources with Bloomberg have revealed that Tencent is working to secure a massive $6 billion loan to acquire what TMT Finance (via Seeking Alpha) suggests is a major gaming company. While TMT failed to confirm what this mysterious party might be, the amount of money involved and previous insider speculation has led some to believe that Tencent is interested in acquiring Rockstar Games and 2K Games’ parent company and publisher, Take-Two Interactive.



“Tencent is considering raising several billion dollars in a ‘club’ loan deal and is holding talks...

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Getting **** tired of seeing Tencent's name in gaming-related news. I wish they would just disappear, never to be seen or heard from again. F*cking @sswipes.
 
So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?
That question in only half snarky, I really don't know . I do know threads like this do go a similar way, with fairly strong negative comments, but no actual specific grivances.
' They are Chinese' is a weak one at best be of course... be that we should all then accept everyone can play that game, and say ' they are US Americans' and some such.. meh
 
We had a number of stories in 2020 regarding numerous companies making huge buys to acquire various studios. This seems plausible since those with deep pockets are in a position to take advantage of various economic factors in play due to COVID-19. If not Tencent, then there's probably someone else in the wings we haven't heard about yet. Definitely looks like all the big companies are trying to shore up their developer studios.

Edit: Check here for those stories with "acquire" in the name and you'll see what I mean.
 
I don’t think 6B is enough to get Take Two - I think GTAV has made that much alone.

More, actually, this was from 2018 and it hasn’t really slowed down any
 
I don’t think 6B is enough to get Take Two - I think GTAV has made that much alone.

More, actually, this was from 2018 and it hasn’t really slowed down any
Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
 
So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?

The fact that they are Chinese is not the problem. The Chinese are a great people with tremendous history and culture.

The problem is the current regime in China, a strict dictatorship that disappears dissidents, enforces political censorship and actively pursues industrial espionage. China does not have a free and open market. Absolutely EVERYTHING is controlled by the party. If the party wishes something, you have to do it, or you get shut down, expelled from the country (if a foreigner) or disappeared as a dissident (if Chinese) without any legal recourse. Enforcing their political agenda, and supporting espionage activities is just an order from an intelligence officer away.

Expect any future titles from whatever studio they buy to be censored from any criticism of China or authoritarian regimes in general, and maybe even contain active propaganda against the west, trying to undermine Democracies based on Freedom in general. It can be very dangerous to give a totalitarian regime entryways into our culture and entertainment as I can GUARANTEE it will be used to try to undermine the west from within, feeding players story lines that make young kids critical of that which we hold the most dear, and convincing them that single party rule is a good and viable alternative. I'd argue this is extremely dangerous.

...and what if while you are playing your game, it is scanning through your documents folder and uploading anything it sees as relevant workplace documents from that time you worked from home using your home PC to the Chinese government, which will then turn around and subsidize Chinese knockoffs of the technology and dump it on the international market, driving your workplace out of business, just like they did with Solyndra.

Until China becomes a democratically ruled multi-party state, that has a responsible presence on the international market, and respects international intellectual property norms absolutely everything from China should be considered suspicious.

The Chinese people are great. Their government is dangerous.

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I don’t think 6B is enough to get Take Two - I think GTAV has made that much alone.

More, actually, this was from 2018 and it hasn’t really slowed down any

Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.

Agreed. If the takeover is hostile, it will need lots of cash in order to buy stock.

The question is how much cash Tencent has on hand. Everyone is assuming that the $6B is the totality of what they are spending. Maybe it is supplemental cash to the cash they already have on hand, and they plan on spending a lot more?
 
Agreed. If the takeover is hostile, it will need lots of cash in order to buy stock.

The question is how much cash Tencent has on hand. Everyone is assuming that the $6B is the totality of what they are spending. Maybe it is supplemental cash to the cash they already have on hand, and they plan on spending a lot more?
According to this Tencent Holdings has $37B USD of cash on hand.

https://www.macrotrends.net/stocks/charts/TCEHY/tencent-holding/cash-on-hand
 
Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
Good to know.
 
They don't need $24 billion. They only need enough to acquire 51% of the stock.

Depends on what their intent is. True, they can gain a controlling stake at 50.01% of voting shares, but maybe they are interested in all of the revenues and merging the company into their own.
 
Depends on what their intent is. True, they can gain a controlling stake at 50.01% of voting shares, but maybe they are interested in all of the revenues and merging the company into their own.
Hmm.. thinking about this some more.

Tencent is huge. Like really big... the largest gaming company globally (and has been for a few years), and one of the top 10 corporations across all markets by many metrics.

They don't tend to outright buy everything. They have their fingers in a lot of pies -- a lot of companies where they only own partial stakes. They don't tend to need to own a company outright, but that being said, they have no problem doing so. Not sure what the distinction is between where they just invest into, versus controlling interest. At it's heart, Tencent really is just a conglomerate holding company - they don't really produce anything of their own, but rather they just throw a lot of capital around to other companies that do.

Really, if Tencent wanted to outright buy Take Two or EA, they could. I don't know that they would necessarily want to though. They already have minor parts of Activision/Blizzard and Ubisoft, and a large stake in Epic Games.

Gotta say, them raising capital is curious, but I have no idea what they would do with it. They have interests beyond just gaming companies as well, so it doesn't necessarily need to be a gaming-oriented pursuit.

Taken from Wikipedia, so fwiw:

 
Current market cap of Take Two is about $24 billion USD. Acquisition deals are usually made up of more than cash and stocks, though. If Tencent wanted to do a hostile takeover then $6 billion would certainly not be enough.
$6 billion is just the loan, doesn't mean the loan covers the whole acquisition.
 
So other than being big and Chinese, what has this horrible horrible company has in fact done to gaming?
That question in only half snarky, I really don't know . I do know threads like this do go a similar way, with fairly strong negative comments, but no actual specific grivances.
' They are Chinese' is a weak one at best be of course... be that we should all then accept everyone can play that game, and say ' they are US Americans' and some such.. meh
Entertainment products are already being changed, and nerfed to please the chienese government censors, how much worse that can be when the publisher is actually owned by a chinese company, that fully reports to their government?

It's not about being chinese, it's about their government and regime. Say if tencent was iranian or indonesian it would be just as bad, or worse. It's not about nationality it's about who pulls the strings.
 
Entertainment products are already being changed, and nerfed to please the chienese government censors, how much worse that can be when the publisher is actually owned by a chinese company, that fully reports to their government?

It's not about being chinese, it's about their government and regime. Say if tencent was iranian or indonesian it would be just as bad, or worse. It's not about nationality it's about who pulls the strings.
Yes, this is about the Chinese getting their tentacles into every global piece of culture to influence the world. I don't want to get too soapbox, here, but we have been in a cold war with China for at least 30 years now. It's just playing out through business instead militarily.
 
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