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Tencent grabs majority stake in The Cycle and Spec Ops developer Yager

Tencent has acquired a majority stake in Spec Ops: The Line and The Cycle developer Yager.

Chris Kerr, News Editor

June 22, 2021

1 Min Read

Tencent has acquired a majority stake in Spec Ops: The Line and The Cycle developer Yager. 

The Chinese company, which owns or holds stakes in Riot Games, Supercell, Epic Games, and more, previously grabbed a minority stake in the Berlin-based studio in February

The news comes by way of a translated interview between Yager co-founder and managing director Timo Ullmann and German publication Games Wirtschaft (highlighted by on Twitter by Niko Partners senior analyst Daniel Ahmad).

During the interview, Ullmann said Tencent now owns the bulk of Yager's shares, and indicated the investment was a vote of confidence in the game developer and its freemium shooter, The Cycle

He added that Yager decided to test the waters with the initial minority investment, but eventually realized a more substantial partnership was "logical" as it would allow Yager to utilize Tencent's expertise to make inroads into the free-to-play market. 

"This decision was not made spontaneously, but has grown over time. We decided to start with a minority stake first to see how it goes," said Ullmann. "When it became clear that it made sense for both sides, we prepared the next step. And then, of course, the whole process takes time, because there are many formalities."

Ullmann suggested the Tencent investment would also bring more financial security because "the largest gaming company in the world is now committed to not only a game or a project, but to Yager as a whole."

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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