Wed, 22 Jun, 2016 12:52:24 AM FTimes- STT Report, June 22  Finnish game company Supercell Co-Founder and CEO Ilkka Paananen (L) and Martin Lau, President of Tencent pose while meeting with press in company's headquarters in Helsinki, Finland on June 21, 2016. Chinese Internet firm Tencent will acquire majority stake in Clash of Clans maker Supercell from Japan's SoftBank. Photo Lehtikuva. Finnish mobile game developer Supercell has confirmed that the company is being sold to the Chinese technological giant Tencent.
Tencent will acquire Japanese company Softbank’s stake in Supercell for 6.4 billion euros.
After the transaction, the total value of Supercell will rise to about 9 billion euros.
Tencent also has the opportunity to acquire Supercell shares from other shareholders, like the company owners.
After the completion of all arrangement, Tencent’s stake in Supercell may rise to 84 per cent.
According to Supercell CEO Ilkka Paananen, a change in Softbank’s strategy was the reason for the sale.
One of the key terms of the deal was that Supercell's wide autonomy to decide its own operations and its operating culture would be preserved.
“Already a shareholder’s agreement was signed with the previous owner that Supercell cannot be sold without the consent of the founders,” said Paananen.
Also, the head office and the tax office will remain in Finland as currently.
At this stage, there are no changes to the holdings of the current founders Ilkka Paananen and Mikko Kodisoja.
Through the new owner, the vast Chinese gaming market will open up for Supercell and it is possible for Tencent to reach a billion people and 300 million players.
Paananen described the development as a solution to Supercell’s path to new growth.
“We wanted games that will go down in history and have impact on as many people as possible,” Paananen said.
According to Supercell, the new owner’s strong financial situation ensures that money is not needed to apply for listing in the stock market.
Supercell has from time to time considered going public, however, this would have jeopardised the Finnish company from achieving its own unique corporate culture.
Founded in 2010, Supercell is known for hit games such as Hay Day and Clash of Clans. The company’s operating profit last year exceeded 845 million euros, compared to 514 million euros in the previous year. The company’s turnover amounted to 2.1 billion euros in the last financial year.
According to Paananen, despite the growth prospects and opportunities, Supercell’s roots are in Finland and the company intends to hold onto them closely.
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