Tencent will buy 111.5 million shares from Mr. Qiu Bojun, chairman and Chief Executive Officer of Kingsoft, and buy another 66.9 million shares from Mr. Zhang Xuanlong, a non-executive director. This purchase will make Tencent the biggest stakeholder of Kingsoft.
Tencent chairman and CEO Ma huateng（aka Pony Ma）said in a Weibo update, “We are very excited to reach a strategic partnership with Kingsoft. This partnership demonstrates our commitment to build a healthy and secure internet environment in China. Kingsoft Internet Security company has been in security business for 14 years, therefore it has operational experience, advanced anti-virus technology and adequate talent pool. Our businesses are highly complementary to each other, so this strategic partnership will provide Chinese internet users with a more reliable online security services and a more secure online experience by combining Kingsoft’s strength in security technologies with Tencent’s in network operations. ”
Honestly, what will Tencent get from this purchase?
Observers believe that Tencent is primarily interested in Kingsoft’s two resources: security technology and MMO games development capability. Currently these two are Tencent’s weak links.