Tencent launched 163 new investments in 2018
Tencent Holdings, the largest video game publisher in the world and owner of China’s top messaging app WeChat, made 163 investments in 2018 according to South China Morning Post (SCMP)
2018 posed a challenge for the company, known worldwide for its League of Legends, Arena of Valor, and PUBG video games, as the Chinese government enacted more stringent measures for game publication approval.
Since March last year, Tencent has not received approval for the publication of any of its new games for the Chinese market and has therefore sought other avenues for boosting its revenue.
SCMP, reporting on data from Chinese research company IT Juzi, said that Tencent accelerated the pace of its investments in 2018 to the tune of 163 over 143 in 2017.
Tencent’s investment strategy has prioritised the entertainment industry, although it has also acquired stakes in live-streaming services, ecommerce, online education and more.
See more:
- Hilton opens third flagship hotel in Guangzhou
- Alibaba combines digital transformation solutions into one package
- ByteDance launches video messaging app
“Tencent invests in almost every area,” said William Li, Senior Analyst at Context Lab, according to SCMP.
“That is how it can make sure it is not constantly losing ground to the fierce competition in China’s tech industry. Besides, varied investments are a good way to diversify risk.”
China Knowledge said that Tencent’s profits in Q3 rose by 30% year on year despite the slowdown in its video game revenues, with this strength in profits accrued through its investments.
