Weekly News Digest #9

Tencent in Talks to Acquire Stake in Block Blast! Developer Hungry Studio

Chinese gaming giant Tencent (SEHK: 700) is reportedly in talks to acquire a small stake in Hong Kong-based casual mobile game developer Hungry Studio, according to Bloomberg. Discussions have been ongoing for several months and could result in an investment announcement, although no final decision has been made.

Founded in 2021, Hungry Studio is best known for the casual block puzzle game Block Blast!, which had over 300 million MAU and 70 million DAU as of the end of 2025. The title has achieved significant market penetration, ranking among the top puzzle games in over 40 markets, according to Sensor Tower. Block Blast! was the most downloaded mobile game globally in 2025 with over 368 million installs across App Store and Google Play, ahead of Roblox (295 million), according to AppMagic.

Shenzhen-based Tencent has a long history of strategic minority investments across the gaming sector, including a 30% stake in Larian Studios (developer of Baldur’s Gate 3), ~16% stake in FromSoftware (developer of Dark Souls and Elden Ring), ~35% stake in Shift Up (KRX: 462870) (developer of Goddess of Victory: Nikke and Stellar Blade), and ~26% stake in Vantage Studios, the Ubisoft (PAR: UBI) subsidiary holding the Assassin’s Creed, Far Cry, and Rainbow Six franchises. The company also holds majority stakes in Supercell, Riot Games, and Techland (known for Dying Light). It also operates TiMi Studio Group, which develops the mobile strategy game Honor of Kings and the mobile FPS Call of Duty: Mobile, and LightSpeed Studios, which created the mobile battle royale game PUBG Mobile, also co-developed by LightSpeed & Quantum Studio and PUBG Studios.

The potential minority stake in Hungry Studio would be consistent with Tencent’s established strategy of securing equity positions in high-performing gaming studios. However, unlike its recent direct minority investments, which have been concentrated in PC & Console developers, Hungry Studio is focused on mobile. This suggests the deal would represent a renewed emphasis on direct mobile exposure at the parent level, rather than routing such acquisitions through its subsidiary Miniclip, which acquired Easybrain from Embracer Group for $1.2B in Nov’24. We will continue to follow the development of this deal closely.

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MERGERS & ACQUISITIONS

US-based Unity Software (NYSE: U) is exploring the potential sale of its China business at a valuation of more than $1B, according to Bloomberg sources. Unity entered the Chinese market in 2012 and established Unity China as a joint venture in Aug’22 with investors including Alibaba Group, China Mobile, and ByteDance. Unity reported $503m Q4’25 revenue, up 10% from $457m Q4’24, but shares declined by ~57% over the past three months. A potential divestiture, with discussions ongoing and no transaction guaranteed, would generate one-time cash proceeds and allow management to reduce the company’s exposure to the US-China regulatory and tariff tensions, while refocusing resources on subscription growth and AI-powered tools.

US-based investment firm Shamrock Capital has acquired gaming-focused creative agency Mutiny from Trailer Park Group for an undisclosed sum. The investment aims to accelerate Mutiny’s growth as a gaming-focused creative agency connecting publishers and brands with gaming audiences. Founded in 2021, Mutiny uses research and expertise to help marketing teams with creative, player-first content, social strategy, and community engagement. Shamrock Capital manages ~$7B in assets across media, entertainment, and communications sectors. Under Shamrock’s ownership, Mutiny will continue operating as a standalone business. 

UK-based games developer Splash Damage has acquired Croatia-based studio Gamepires from Jagex (known for RuneScape), a UK-based PC & mobile games developer, for an undisclosed sum, backed by Emona Capital. The acquisition unites Splash Damage’s multiplayer and first-person shooter co-development expertise (Gears Tactics, Halo: The Master Chief Collection) with Gamepires’ open-world survival capabilities. Gamepires develops SCUM, a survival title that sold more than 3 million copies by Dec’22 and approximately 6 million by Feb’26. Splash Damage Group intends to focus on expanding premium development partnerships, scaling the SCUM franchise, and investing in new IP. Jagex purchased Gamepires in 2022; the deal follows Emona Capital’s acquisition of Splash Damage from Tencent in Sep’25. 

VENTURE FINANCING

US-based XR glasses company VITURE has raised $100m in a funding round led by China-based venture capital firm Legend Capital, bringing total funding to over $200m. The round follows a $100m raise in Sep’25. The funding will support the launch of a new product line and global retail expansion, building on VITURE’s third-generation lineup, the Luma Series and The Beast, released in H2’25. The company secured in-store demo placements at Best Buy and partnered with CD Projekt RED on a limited-edition Cyberpunk 2077 XR glasses in Dec’25. VITURE has also expanded into enterprise applications through a joint AR and AI initiative with NVIDIA and Stanford Medicine.

US-based AI-powered interactive storytelling platform Giant has raised $8m in a seed funding round led by Matrix, Decasonic, and Griffin Gaming Partners. The funding will expand the platform, which enables children to create personalized stories, interact with AI-driven characters, and build evolving narrative worlds. Since its May’25 launch, the platform has surpassed 1 million minutes of conversation between children and characters and has generated more than 200,000 personalized episodes.

US-based messaging games marketplace Jest has raised $7m in a seed funding round led by Innovation Endeavors. The funding will scale the platform and onboard studios building games playable directly within messaging apps via Rich Communication Services (RCS). The platform achieved more than 1 million games played and over 300,000 messages exchanged during a four-month beta ending Jan’26. Early partners include Pocket Gems and HayHay. Jest is set to expand into 14 additional markets by Q3’26, supported by a newly established Games Fund that offers up to $1m for flagship titles.

UK-based Web3 gaming infrastructure platform Power Protocol has received a $3m investment from BITKRAFT Ventures. UK-based Pixion Games, the studio behind the platform, successfully raised $12.4m in its most recent funding round, so total ecosystem funding has reached $15.4m. The investment will expand shared infrastructure and token utility across multiple titles following open beta traction. Power Protocol enables game developers to build shared on-chain systems and token economies under the $POWER token. The platform’s flagship title, Fableborne, a mobile action RPG developed by Pixion Games, has attracted more than 400,000 players during its global open beta, reached a peak of 108,000 daily active users, and generated $21.5m in NFT presale revenue before the token launch. Previous investors include Delphi Digital, The Spartan Group, Mechanism Capital, and L1D AG.

Finland-based refurbished gaming PC marketplace Prenew has raised $2.12m (€1.8m) in a pre-seed funding round led by Antler. The funding will support European expansion and the hiring of up to 100 employees in Finland over 18 months, with a focus on automation in device refurbishment and marketplace infrastructure. Founded in 2024, Prenew operates a cross-border marketplace for professionally refurbished gaming PCs across Finland, Sweden, and Germany.

Türkiye-based Roblox development studio Winter Wolves Studios has secured an undisclosed investment at a $1.5m valuation, marking the first known institutional funding for a Roblox-native studio in Türkiye. The investor’s name and ticket size have not been disclosed. Operating under Düzce Teknopark, the studio develops story-driven, community-focused titles for the Roblox platform. Roblox has been inaccessible in Türkiye since a domestic ban in 2024, though local developers continue to build for the platform’s international audience.

Vietnam-based mobile gaming venture builder Replay Global has invested an undisclosed amount in Vietnam-based mobile games studio Playard. Founded in 2025, Playard develops mobile titles focused on social gameplay features. The studio’s portfolio includes puzzle titles Match Buddies and Cat Rush, both released in 2025. Playard will continue operating independently, while Replay Global provides capital and strategic collaboration supporting product scaling and operational capabilities.

EARNINGS REPORTS