Frontier Developments (FDEV) has received an endorsement from one of the world’s largest technology companies in the shape of a £17.7m investment. Tencent – the Chinese tech giant – has bought 3.4m new shares at 523p to give it a 9 per cent stake in the Aim-traded group. The cash provides Frontier with financial security as it progresses towards the launch of what is expected to be its most successful video game to date.
Alongside the financial benefits, Tencent could provide an operational boost to Frontier. The Chinese group owns a gaming platform ‘We Game’ on which it is now likely to advertise Frontier’s games. This will improve Frontier’s access to the massive Chinese market, where it has already achieved some success with ‘Planet Coaster’.
