Tencent is investing into Dontnod Entertainment, approximately $37 million for a minority stake

Tell Me Why Tyler in sunglasses
Tell Me Why Tyler in sunglasses (Image credit: Xbox Game Studios)

What you need to know

  • Dontnod Entertainment is a French game development studio known for titles like Life is Strange and Tell Me Why.
  • Tencent is investing approximately $37 million into Dontnod.
  • Tencent owns several game companies and has invested in numerous others.

In a press release, Dontnod Entertainment announced that it is receiving an investment from Tencent. The well-known mega-conglomerate is investing around €30 million, or $37 million, into Dontnod Entertainment, as part of a total €40 million in capital, or $48 million, being raised by Dontnod. Tencent receives a minority stake as a result of this cash influx, with the option of nominating a board member.

Dontnod Entertainment is known for its narrative-driven games such as Life is Strange, Vampyr and more recently, Tell Me Why and Twin Mirror. The funds from this investment will be used to further Dontnod's plans of self-publishing, as the company is currently working on six different games. Dontnod Entertainment opened a new studio in Montreal, Canada to expand its production back in September 2020.

Oskar Guilbert, CEO of DONTNOD, stated the following:

"We are delighted to welcome Tencent as an investor in DONTNOD. It is a real mark of confidence on the part of a leader in online games who has accompanied many success stories and invested in several leading companies in the video game industry. Thanks to this partnership, DONTNOD is perfectly positioned to seize the many growth drivers in the video game industry, particularly in China and on mobile platforms in collaboration with the industry leader. The fundraising announced today will allow accelerate and strengthen the implementation of our development plan, which aims to capture more value from our original creations by self-publishing more games."

Tencent has invested in a truly numerous number of companies, including Activision, PlatinumGames, Klei Entertainment and more.

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Samuel Tolbert is a freelance writer covering gaming news, previews, reviews, interviews and different aspects of the gaming industry, specifically focusing on Xbox and PC gaming on Windows Central. You can find him on Twitter @SamuelTolbert.

  • Is nobody not worried about how much tencent is in everything?
  • Not at all.
  • Agreed, so long as they don't actually change these games into mobile only games or some kind of cash grab and I can still play them on my Xbox.
  • A lot, to be honest. They seem to have endless money, and they're gonna buy everything out. Let's talk about it in ten years and we'll see how this has changed the landscape of gaming. And to think some people say Microsoft is nearing a gaming monopoly, lol.
  • This is probably the most interesting case as this isn't a game company that focuses on monetization, solely story driven endeavours. But it's also only an investment and not a buy out or anything like that.
  • Investments turn into majority stake takeovers if tencent gets enough shares