Paradox Interactive listing attracts Tencent as fan and long-term investor
Leading online games publisher and platform to contribute to Paradox’s future journey
(May 27, Stockholm) Tencent Holdings Limited, which operates China’s largest social network and online games platform, has subscribed to and been allocated shares in the initial public offering of Paradox Interactive (”Paradox”) on Nasdaq First North Premier.
Tencent has been allocated 5.28 million shares at the offering price of SEK 33 per share, and hold 5% equity interest in Paradox Interactive post transaction. Fredrik Wester and Spiltan will continue to be key shareholders in Paradox with 33.3 % and 30.5 % shareholdings, respectively.
A long-time fan of Paradox games, Tencent will work to explore opportunities with Paradox to build up the emerging grand strategy, simulation, and story-driven RPG fan bases in China. Tencent has a history of supporting new game genres in China, where it operates globally renowned titles such as League of Legends, Cross-Fire, Dungeon & Fighter, Call of Duty Online, FIFA Online and Need for Speed, as well as many popular locally-developed games. Tencent also has a track record of building strong partnership with game industry leaders, such as Activision Blizzard, Riot Games, CJ Netmarble and Miniclip, via equity investment and support in distribution and operations.
Fredrik Wester, CEO and principal owner of Paradox, said:
“Tencent approached us as big fans of our grand strategy games and with a genuine interest in Paradox and our onward journey. It has always been very important for us that any partners we bring on board can contribute in a unique and attractive way to Paradox and have a long term commitment to the company. Tencent certainly fit the bill with their network and know-how of a market where we are not yet present and we believe Tencent will be able to add great value to Paradox in near and long term.”
Steven Ma, Head of Games Publishing at Tencent, said,
“As China’s game market further develops, players will advance to more sophisticated and complex genres such as grand strategy and simulation games. I have spent many hours in Hearts of Iron 2, and believe our rich social resources can help Paradox build up loyal fan bases in China.”
James Mitchell, Chief Strategy Officer at Tencent, added
“Paradox has an inspiring record of focusing on doing a few things extremely well, creating games that demand much from its players but deliver more in return, and faithfully extending its franchises via high quality updates and expansion packs. As a player of Europa Universalis games for 10 years and of Stellaris since launch, we look forward to teaming up with thoughtful and strategic gamers in China to discover Paradox’s deep, emergent titles, and enabling them to colonize the New World, as well as the outermost Galactic confederations.”