Tencent reportedly wants out of Marvelous and others, but keeps FromSoftware stake untouched

Tencent is reportedly trying to exit multiple minority studio investments, including a stake in Story of Seasons developer Marvelous, while leaving its FromSoftware and Kadokawa exposure alone. The reported move signals that Tencent is reassessing where its minority positions are actually earning strategic value, not just headline visibility.

The key detail: Tencent reportedly acquired 20% of Marvelous shares in 2020, but now it is looking to sell stakes back to original management in some cases even if that means taking a loss. Bloomberg framed this as part of a broader portfolio reassessment, and the article adds that Tencent is also reportedly not backing away from FromSoftware. That “not affected” carve-out is the tell, because it suggests Tencent is willing to unwind relationships elsewhere while protecting at least some high-confidence bets.

So what studios are in play? The report says Tencent has minority investments across a roster that includes Ubisoft, Bloober Team, Epic Games, Shift Up, and Remedy. But the only studios explicitly named in the report are Marvelous, plus Story of Seasons and Daemon X Machina developer Marvelous specifically, as well as Don't Nod from the prior week’s coverage. Tencent also has stakes tied to PlatinumGames (Bayonetta) and FromSoftware (Elden Ring), and those are mentioned in connection with the “unaffected” note for the latter.

Why would Tencent want to offload certain positions? The Bloomberg report characterizes it as negotiation exits from minority studio investments, which usually comes down to incentives and risk management, not fandom. Minority stakes can be useful when they provide influence, optionality, and access to talent or pipeline. But they can become liabilities if expectations slip and the path to monetization or partnership gets murky. In that setup, selling back to original management, even at a loss, can look like a discipline play: reduce exposure, free capital, and stop tying up leverage in companies that need a turn in the business model.

The report also ties this reassessment to at least one studio-specific pressure point: a week earlier, it was reported that French developer Don't Nod, known for Life is Strange, Lost Records, and most recently Aphelion, could face trouble because Tencent is reportedly not likely to back the studio going forward after missed sales expectations. In that earlier reporting, Tencent was described as owning a 42% stake in Don't Nod, with word that the company could face closure if a publishing deal is not made with an external partner for its next project.

This matters beyond the studios themselves because it highlights how Tencent’s minority investments behave during a downturn in performance. Even without majority control, a big shareholder can effectively set the “temperature” for how much runway the company gets, how hard teams push for commercial milestones, and whether management can realistically secure external partners. When sales expectations are missed, minority investors can pivot from support to exit, especially if they believe another external publishing path is not emerging fast enough.

There is also a board and strategy angle here. Minority investments can keep a large investor involved, but they still leave critical decisions with management and other stakeholders. If Tencent is negotiating exits, that suggests internal discussions over control rights, next-round funding dynamics, and whether the relationship is producing enough strategic value relative to alternative bets. And since the report says some exits could be sold back to original management, it implies Tencent is aiming for clean ownership transitions rather than dragging out negotiations indefinitely.

On the other side of the story, Tencent is not reportedly letting go of FromSoftware or Kadokawa. The report explicitly states that Tencent's investments in likes of PlatinumGames and Elden Ring developer FromSoftware (and its parent company Kadokawa) will not be affected by these changes. For executives, that is the most important comparison point: the company is willing to reprice or exit some minority positions, but it is apparently treating FromSoftware as an anchor. In practical terms, this can preserve Tencent’s relationship to one of the most valuable production and publishing pipelines in Japanese games, without forcing a full retrenchment.

Tencent did not fully dodge the question either. In a statement to Bloomberg, Tencent said: "We remain fully committed to working with our investees and maintaining our strong presence in the Japanese game market over the long term." That language is likely meant to reassure partners and management teams that long-term positioning is intact, even if specific stakes or timelines are changing.

Second-order implications for decision-makers are straightforward: if Tencent is recalibrating minority investments based on performance and partner availability, other studios with minority investors should assume the “portfolio holder” mindset can shift quickly. Boards should also expect more scrutiny on sales targets, publishing leverage, and how quickly management can secure external deals when internal momentum is not enough. And for investors and operators watching Tencent, the most useful read is not the list of studios, it is the pattern: exit where confidence is weakening, and protect where the strategic thesis still holds, as shown by the reported exemption for FromSoftware and Kadokawa.