Tencent: 163 new investments in 2018

17/01/2019

 

Tencent wanted to overcome the moment of economic impasse, look elsewhere and diversify investments

 

The Chinese technological giant Tencent made 163 investments in 2018, which are added to those already in place (143) in 2017, as confirmed by the recent IT Juzi report.

Analyzing the diversified portfolio, Tencent has invested in live-streaming and online education up to e-commerce. A quarter of its investments, then, were dedicated to entertainment and culture and now Tencent has more than 600 companies in its portfolio.

 

Investment efforts seem to have successfully offset slower but steady growth

 

The new investments must be sought in the last period of the company. Tencent’s core businesses, especially social media and games, have undergone greater government control and intense market competition. The company’s gaming revenues have been steadily declining last year due to the government’s freeze on issuing gaming licenses.

Precisely for this reason, Tencent has looked beyond, especially abroad, making investments in the United States, the United Kingdom, Germany, Brazil and Nigeria.

The company’s investment efforts seem to have successfully offset slower growth with a steady stream of profits. In fact, in the third quarter of 2018, Tencent’s profit increased by 30%, mainly thanks to the gains from its investments.

 

MORE ON THIS TOPIC

Leave a Reply

Your email address will not be published. Required fields are marked *