Speed Daily has got the scoop that Hasbro, the big American toy company, is thinking about selling its famous game "Dungeons & Dragons" (we'll call it "DND" from now on), and guess who might be picking it up? Tencent is in the running as one of the possible buyers.
Right now, they're just chatting, nothing's set in stone. Hasbro and Tencent still need to figure out all the nitty-gritty details of the deal.
Word on the street is that Hasbro's money troubles are the main reason they're thinking about letting go of DND. Tencent's Larian Studios, the brains behind the game "Baldur’s Gate 3," which bagged the TGA Game of the Year award in 2023, is playing the middleman in this deal. Hasbro thought Larian Studios could be a good fit as a buyer because of the success of "Baldur’s Gate 3." But, since Larian Studios couldn't foot the bill, they brought Tencent to the table.
Hasbro's been around forever, starting in 1923. They hit the big leagues in 1935 with the Monopoly series games. Now, they own big names like Transformers, Dungeons & Dragons, Monopoly, and My Little Pony. But, despite their long history, Hasbro's facing a rough patch. Their stock price took a nosedive from $108 in 2019 to $51 by January 26th.
According to their financial report up to Q3 2023, Hasbro's been on a losing streak for four quarters straight, mainly because their main gig – selling toys – isn't doing so hot. They're in the red with over $500 million USD in losses from Q4 2022 to Q3 2023. In Q2 2023, they even hit a rough spot with negative free cash flow. To weather the storm, Hasbro had to make some tough calls, like letting go of more than 1,900 employees – that's over 20% of their workforce.
But, here's the twist – even with all the losses, DND-related stuff is still gold for Hasbro. Video game adaptations, especially "Baldur’s Gate 3," have been a hit. Released last year, it not only got a ton of awards, including Game of the Year at the TGAs but also raked in $657 million. That's more than the Harry Potter game "Hogwarts Legacy," making it the king of PC exclusive games in 2023.
And it's not just video games. DND is a big deal in tabletop gaming too, loved by fans all over Europe and America. It's even made appearances in popular shows like "The Big Bang Theory" and "Stranger Things."
Now, Tencent's eyeing the prize. They're talking to Hasbro about grabbing rights, especially for making electronic games based on DND. If Tencent seals the deal, they'll have a tight grip on Dungeons & Dragons, dodging problems like high copyright fees and long-term revenue sharing.
For Tencent, a Chinese big shot, getting a chance like this to snag a big deal like Dungeons & Dragons from Hasbro is like hitting the jackpot. Let's see how this game of negotiations plays out.