China’s Tencent Holdings Ltd will invest 3 billion yuan ($474 million) in smaller peer Shanda Games, a move that will boost Tencent’s lead in the local video game market.
The investment comes as Tencent gears up to formally launch global hit game “PlayerUnknown’s Battlegrounds” in China.
Shanda said Tencent’s investment would help “bolster” Shanda’s core business. It also said the two firms would collaborate on current businesses, including several of Shanda’s popular games.
Tencent also owns significant stakes in U.S. game developers Riot Games Inc, Epic Games Inc and Activision Blizzard Inc. In 2016, Tencent bought the majority of Finland-based “Clash of Clans” mobile game maker Supercell for $8.6 billion.