Tencent’s Deal-Making Image Clouded by Supercell’s Slowdown

Tencent’s 2016 megadeal to buy Supercell cemented the Chinese tech giant’s stature as a global powerhouse in the $100 billion-plus videogame industry. The roughly $8 billion transaction by a Tencent-led group of Chinese investors was a huge bet that the Finnish mobile game maker behind worldwide hit “Clash of Clans” would keep creating new blockbusters.  

Two years later, Supercell’s revenue has slowed markedly as it hasn’t launched new games, and some investors in Tencent’s consortium are getting worried about their future returns, according to people familiar with the matter. Supercell’s slowdown also raises questions about whether Tencent, a company known for its deal prowess, may have overpaid in one of its highest-profile acquisitions.