Tencent looking to get full ownership of Funcom

They've made an offer to shareholders, with the plan being for Funcom to continue supporting games under Tencent's umbrella.

Tencent has announced a new voluntary cash offer to acquire all shares of the Norwegian studio Funcom, having already owned 29% of all shares as well as shares in others like Riot Games, Epic, Ubisoft, and more.

"We have had a great relationship with Tencent as our largest shareholder so far and we are excited about this opportunity," says Funcom CEO Rui Casais. "We will continue to develop great games that people all over the world will play, and we believe that the support of Tencent will take Funcom to the next level. Tencent will provide Funcom with operational leverage and insights from its vast knowledge as the leading company in the game space."

Tencent is looking to get all shares from other shareholders, valued at 17 NOK per share, which is 27.3% higher than the closing price of shares as of January 21. The offer period is expected to start in early February, and Funcom management has decided to recommend shareholders to accept the offer.

Speaking of management, no changes are expected in this department, and the studio will continue to support their games like Conan Exiles.

"We are impressed by Funcom's strengths as a developer of open-world multiplayer, action and survival games. Funcom has a strong track-record in developing new titles with long life span. We are glad to deepen our relationship with Funcom and look forward to collaborating with Funcom to deliver more exciting and enjoyable game experiences to fans worldwide," commented Steven Ma, Senior Vice President of Tencent.

As a part of this announcement Funcom also reveals its plans to "increase the ambition level of the upcoming Dune game pending board approval, with resources being allocated from other initiatives and possible additional financing".

Is this a good move for Funcom?