Tencent potential investor in Goldman Sachs-backed game developer Voodoo

Tencent potential investor in Goldman Sachs-backed game developer Voodoo

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  • Chinese videogame company Tencent is considering acquiring a minority stake of 20-25% in Voodoo for circa $568M.
  • Ubisoft and Zynga are reportedly also eyeing a stake in Voodoo.
  • Per Bloomberg sources the deal could value Voodoo at $1.6B, launching it in the unicorn category.

The ongoing pandemic has not halted the revenue and user growth for Tencent. As a result, it is considering bidding for a minority stake in French mobile game developer Voodoo, as reported by Sina News.

While the details are not divulged by both companies and remain uncertain as of now, the potential deal would give Tencent approximately 20 – 25% equity in the firm worth somewhere less than $568m. In a report from last month, Bloomberg suggested that Voodoo’s stake sale could take its value to $1.6b.

Niko Partners analyst Daniel Ahmad’s tweet said that the deal might be a step in Tencent’s “silent global expansion through identifying gaming firms to invest in or acquire.”

Tencent potential investor in Goldman Sachs-backed game developer Voodoo
Image source: Twitter

However, Tencent isn’t the only one eyeing Voodoo. Other interested firms include Ubisoft Entertainment and American game developer Zynga Inc.

As of today, Voodoo’s co-founders Alexandre Yazdi and Laurent Ritter are the majority owners of the company. In 2018, Goldman Sachs private equity fund deemed West Street Capital Partners VII bought a stake in the business.

It’s easy to see why gaming giants are vying for the French hyper-casual gaming firm. With over 150 million monthly users, Voodoo was the only gaming company to secure the most downloads worldwide in the App Store and Google Play as recorded in February 2020, according to a report by Sensor Tower. Its gaming titles include Helix Jump, Roller Splat, and Snake VS Block which are quite well-known among gamers.

At a time when the pandemic is forcing more people to stay indoors and, on their phones, the gaming sector is surely one to attract rising revenue.

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