Tencent, the China-based megacorp that invests deeply in large companies such as Riot Games and Epic Games, has acquired a majority stake in a much smaller company. That company is Canadian game developer Klei Entertainment.
The news comes via a forum post from Clay founder Jamie Cheng. He said the partnership “helps us navigate a changing industry and helps us focus on what we want best: unique experiences that no one else can.”
Cheng explained that as part of the deal, “Clay retains full autonomy in all aspects of the studio.”
Tencent and Klei’s relationship dates back to 2016, when the conglomerate started publishing Clay games in China Don’t starve Together and more recently, Don’t Stave: Newhome.
In 2020, Tencent faced some regulatory burden from the US government for its ownership of the messaging app WeChat. There was a brief moment when the government appeared to be planning an “investment ban” on the company, along with other Chinese companies such as Alibaba and Baidu.
When the Trump administration began to wind down, Reuters reported that the ban had been lifted.