Analysis of Tencent’s Acquisition of Supercell: Competitive Strategy Perspective

As one of the most successful game companies in China, Tencent has always been essential to its continuous development and growth through frequent and effective overseas mergers and acquisitions. To achieve the same excellent results in mobile games, Tencent spent $8.6 billion in 2016 to acquire an 84.3% stake in a Finnish game developer, taking the world's most successful mobile game developer into its pocket. Therefore, the research and analysis of the representative event of Tencent's acquisition of Supercell can provide valuable suggestions and meaningful references for other game companies' overseas mergers and acquisitions. In this paper, Firstly, Supercell's enterprise model and competitive market advantage are studied in depth. The adaptability of Supercell and Tencent is discussed, Tencent's M&A behavior is evaluated, and suggestions and summaries are given.