Chinese internet Tencent has continued its recent investment spree after it backed U.S.-based game studio Pocket Gems to the tune of $90 million.
Tencent invested in Pocket Gems back in 2015, when it put in a reported $60 million for a 20 percent stake. This time around the Wall Street Journal reported the investment as $90 million, which TechCrunch has confirmed independently. That deal, the Journal said, takes Tencent’s equity to 38 percent, giving Pocket Gems a valuation of around $600 million.
That’s particularly impressive given that the company is known for just two titles: Episode, an interactive storytelling game predominantly used by women, and 3D strategy game War Dragons, which is a bigger hit among male gamers.
Pocket Gems, which was founded in 2009, claims to have notched 300 million downloads to date and its monetization efforts appear to be picking up steam. App analytics company Sensor Tower estimates that revenue for April reached $17.5 million which, if maintained, would put the company on course to surpass $200 million in sales this year. Pocket Gems said 2016 was a record for sales and gamers, but it did not disclose figures.
“We think we’re pretty unique because we are able to make products for different audiences and both are successful,” Pocket Gems CEO Ben Liu told TechCrunch in an interview.
Liu said that, to date, Tencent had been fairly hands-on helping…