Tencent buys minority stake in Voodoo

Chinese giant Tencent acquired a minority stake in Voodoo, French hyper-casual developer and publisher. Following the deal, Voodoo is valued at $1.4 billion.

According to InvestGame, China is already one of Voodoo’s biggest markets, which accounts for 7.5% of all the company’s downloads. All of these come from iOS. The transaction will allow the French compnay to reach millions of Chinese Android users through WeChat Mini Games (Instant Games). Conveniently, Voodoo’s titles will not require a lot of changes to comply with regulatory updates in China since games monetized via ads do not require a license in the country. Voodoo is planning to open an office in China.

For Tencent, in the words of Niko Partner’s Daniel Ahmad, the deal might be another step in its “silent global expansion through identifying gaming firms to invest in or acquire.”

Voodoo’s valuation of $1.4 billion seems too high to Eric Kress, head of Gossamer Consulting Group, the research firm focusing on console and mobile markets. Apple’s new iOS 14 will allow users to easily deny IDFA (Identifier for Advertisers) tracking. This might significantly limit Voodoo’s UA insights on iOS. “In the world without IDFA, the Voodoo’s revenue base is questionable,” says the analyst.

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