Bit of Elite Dangerous business news to report today. Specifically, the 9% Frontier Developments purchase by the Chinese company Tencent. The acquisition comes by way of the sale of 3.37 million ordinary shares in a £17.7 million deal.
According to the report, Frontier will be putting the new cash into growth investment, specifically in terms of staff size and portfolio. Prior to the deal, cash reserves for the company sat at £12.6 million at the end of May 2017. “This strategic investment will both help drive our scale up, and improve access and accelerate our growth into the key Chinese market,” said Frontier CEO David Braben.
Frontier joins a growing bundle of studios in Tencent’s acquisition folder, including Riot Games, Supercell, Miniclip, Epic Games, Netmarble, and Paradox Interactive. According to chief strategy officer James Mitchell, Frontier drew Tencent’s attention due to the studio’s “highly scalable game engine technology, decades of development experience, and increasingly sophisticated live operations”. Interest in games based on space exploration and theme parks in China are also noted as factors in the purchase.
Considering that Frontier Developments is working on some yet-to-be-announced game that’s set to be revealed at their own convention, this extra injection of cash will very likely be put to good use. We’re definitely curious to know where Frontier will go with this latest business development.