Internet company Tencent has invested approximately $60m in US-based mobile game developer Pocket Gems, the Wall Street Journal reported yesterday, citing people familiar with the matter.
Tencent took a stake sized at around 20% in the deal, and will look to leverage Pocket Games’ content to help it grow its mobile business in its home country of China.
Founded in 2009, Pocket Gems specialises in free-to-play mobile games and its games have been downloaded more than 200 million times in total.
The company is now looking to expand into more in-depth games, beginning with War Dragons, a recently released multiplayer game that uses the company’s Mantis Engine technology to bring 3D graphics to mobile gaming.
Pocket Gems had previously raised $5m in a 2010 round led by venture capital firm Sequoia Capital that also included private investors Michael Dearing, Jeff Fluhr and Omar Hamoui.
In addition to its investment, Tencent will also help Pocket Gems expand into the rapidly growing Chinese market. In the past five years Tencent has also funded gaming companies including Glu Mobile, Hammer & Chisel, CJ Games and 4:33 Creative Lab, and acquired Riot Games
Ben Liu, chief executive of Pocket Gems, said in a press release: “We are thrilled to be partnering with Tencent, whose unparalleled strength in games publishing and operations in China will help us create great mobile games and entertainment for players globally.
“The next chapter of Pocket Gems will be defined by technical innovation and a sharp focus on creating original mobile-first products, as evidenced by the development of our Mantis Engine over the past two years.”