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.