Shenzhen-based Chinese Internet services giant Tencent Holdings Ltd. has reached a strategic investment agreement with South Korea’s gaming company CJ Games to acquire a 28% stake in the company for US$500 million, according to a company announcement.
Tencent will be the third largest shareholder in CJ Games after the transaction.
CJ Games says it will use the proceeds to invest in leading game developer and expand its gaming business worldwide.
As part of the deal, CJ Games will also acquire and merge Netmarble, a game distribution division of its parent firm CJ E&M.
Founded in 2011, CJ Games is an online and mobile games developer and publisher under CJ E&M, which is an international media group in South Korea.
"Our partnership combines CJ Games’ unrivaled game development skills and mobile game line-up, together with Tencent’s strong game publishing and operation capabilities in China," says Martin Lau, Tencent’s president.
Tencent acquired a 15% stake in Beijing-based e-commerce firm JD.com for US$214.7 million earlier this month. It also plans to acquire around 20% interest in Beijing-based Internet video company Youku Tudou Inc. for at least US$300 million.