South Korea-based games developer Bluehole is in discussions with internet company Tencent about an investment of more than $500m, the Wall Street Journal reported yesterday citing people familiar with the matter.
The investment would give Tencent a 10% stake in Bluehole, valuing the business at more than $5bn. Additional investors are said to be likely to participate in the round.
Bluehole owns PUBG, which develops online multiplayer game PlayerUnknown’s Battlegrounds. Tencent Games, the video game subsidiary of Tencent, obtained the distribution rights to the game in China last year.
Tencent’s investment in Bluehole was first rumoured last month, when the Korea Herald reported the corporate was looking to invest $468m in return for an 11.5% stake.
Bluehole reportedly received a Kw70bn ($61m) investment from Tencent in August 2017.