Internet group Tencent has invested an amount in US-based mobile game developer Pocket Gems reported by the Wall Street Journal to be $90m.
The deal valued Pocket Gems at $500m and increased Tencent’s stake in the company to about 38%, according to the WSJ. Tencent had previously provided $60m of series B funding for Pocket Gems in a 2015 round that valued it at $300m.
Founded in 2009, Pocket Gems’ games have been downloaded more than 300 million times on Android and iOS. It is best known for celebrity-themed choose-your-own adventure game Episode and 3D multiplayer action strategy game War Dragons.
The new capital will fund expansions of the communities of both games and the establishment of a studio that will concentrate on developing 3D multiplayer mobile games. It will be launched later this year along with its first title.
Tencent senior vice-president Steven Ma said: “Tencent is happy to reaffirm our long term support for our strategic partner, Pocket Gems.”
“We admire their history of focusing on top talent to create innovative new products that can delight users, and look forward to a bright future ahead.”
Venture capital firm Sequoia Capital is Pocket Gems’ other investor, having led a $5m series A round in 2010 that included angel investors Michael Dearing, Jeff Fluhr and Omar Hamoui.