According to recent reports, Tencent bringing a change in its M&A strategy by focusing its attention on buying the majority shares in various overseas gaming companies. The company is doing so as it wants to expand itself globally. Read the entire article to learn more about this news piece.
About the new strategy
“In terms of the game business, our strategy is … to focus on developing our capabilities, especially in the international market,” said James Mitchell, the chief strategy officer. “We will continue to be very active in terms of acquiring new game studios outside China.” “We believe Tencent will continue to make reasonable investments to acquire quality gaming content and talents and deepen partnerships with top-tier studios worldwide in order to step up its investments and presence in overseas markets,” said Citi analysts in a report in early September. Apart from this new strategy the company is also doing and planning many other strategies to expand and increase its profits. One of them is that it will start investing more in Southeast Asia as the population is humongous which makes it a good breeding ground for any business. These strategies are extremely different from the ones the company follows in China. The reason behind that is the regulations became stricter in the country and the divestment of a clutch of domestic portfolio companies. Due to a lot of rejection of game proposals from China, the company saw a downfall in its revenue by 1%.
About Tencent
Tencent is a multinational company having its headquarters in China. It is a well-known company and its mission is to make the lives of people better through its services. It basically deals with internet solutions. Through its services, it wants to connect everything and help people lead a more convenient life by using its services. The company is one of the biggest internet companies in China. People love to work in this company as it has a good work culture and is known to pay its employees well. The company works on the principle of using technology for good. This principle is the basis of its existence and it aims to use technology in the best way possible to make people’s lives easier. It also develops games and helps its users enjoy an amazing digital experience. The company keeps coming up with creative and innovative games that make the users want to play them time and again.
