Tencent plugs holes, and boosts profits, with 163 new investments – SCMP
What happened: Chinese tech giant Tencent made 163 investments in 2018—more than the 143 in 2017, according to recent IT Juzi report. While Tencent’s diversified portfolio ranges from live-streaming and online education to e-commerce, a quarter of its investments were in entertainment and culture. Tencent now has more than 600 companies in its portfolio.
Why it’s important: Tencent’s core businesses, namely social media and gaming, have been facing increased government scrutiny and intense market competition. The company’s gaming revenue was in steady decline last year due to the government’s freeze on issuing game licenses. As a result, Tencent has looked further abroad, making investments in the US, UK, Germany, Brazil, and Nigeria. The company’s investment efforts appear to have successfully offset slower growth with a steady profit stream. In the third quarter of 2018, its profit increased 30% mainly due to gains from its investments.