Tencent acquires controlling stake in Swords of Legends dev Wangyuan Shengtang

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Tencent has dramatically increased its stake in Wangyuan Shengtang, the Beijing-based developer behind action-RPG series Swords of Legends (or 'Gujian' as it is known in China).

Using investment vehicle Guangxi Tencent Venture Capital, the company acquired 100% of Dongtai Yunpeng Culture Co on Friday, according to the South China Morning Post. Dongtai owned 43% of Wangyuan, while Guangxi Tencent Venture Capital increased its own stake from 23% to 31%.

Tencent already held a 20% stake in Wangyuan via Linzhi Tencent Technology, which first invested in the developer back in 2020.

Tencent's total stake in Wangyuan now amounts to more than 94%. This gives Tencent access to the Beijing studio's IP, development resources, and its marketing and distribution channels.

Wangyuan founder Meng Xianming will stay on as chief executive, with Tencent reportedly giving the studio free rein to continue developing its games.

Tencent and Wangyuan are already collaborating on a new RPG entitled Ash Echoes.

While less known in the West, Swords of Legends is a hugely popular franchise in China, having sold over six million units by July 2021, and even serving as the basis for a Chinese TV show.

Western players may be more familiar with MMO spin-off Swords of Legends Online, which was published by Gameforge, although this shut down last year in a mutual decision between that publisher and Wangyuan.

Tencent has long since established itself as one of the biggest investors in the games industry, although a recent report showed it dramatically cut the number of investments made in 2023.