Why Did Tencent Buy Nearly 30% of a Norwegian Game Maker?

Tencent (OTC: TCEHY) recently agreed to buy a 29% stake in Funcom (OTC: FCMKF), best known for its Conan the Barbarian games, to become the Norwegian game developer's top shareholder. Norway-based KGJ Capital AS, Funcom's top investor, will sell its entire stake to Tencent.

The deal values Funcom at 1.22 billion Norwegian crowns ($134 million), a 22% premium over its closing price last Friday, and implies that Tencent paid about 354 million crowns ($39 million) for KGJ's stake.

Image source: Funcom.

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Source Fool.com