Chinese internet company Tencent has confirmed an agreement to buy Supercell, the developer of the game 'Clash of Clans', in a deal valuing the Finnish company at USD 10.2 billion. Tencent is buying 84 percent of Supercell, while Supercell's employees will continue to own the rest of the company. Tencent said it will continue to encourage a strong employee involvement through share incentives. In future employees will be able to sell shares from vested options to Tencent on an annual basis.
Softbank confirmed it's selling its 72.2 percent stake in Supercell for USD 7.3 billion. In addition, Softbank will receive a dividend of USD 0.4 billion from Supercell prior to closing of the transaction. Softbank said it earned a total return of USD 8.4 billion on its investment in Supercell, equal to 2.9 times the capital invested. Softbank first acquired control of Supercell in October 2013, but the Japanese company has been monetising some of its investments in order to focus on its core telecom business and strengthen its balance sheet. It will receive 48 percent of the payment for Supercell in August, 50 percent in November and 2 percent in August 2019.
Supercell said the deal with Tencent will help it maintain its creative independence while also expanding its audience, building on Tencent's platforms in China. The company will remain headquartered in Helsinki following the takeover and be led by the same management team. The takeover is expected to close in Q3.
