Tencent Switches its Expansion Priorities to Majority Deals and International Gaming Businesses.


By Aahil

Reuters, HONG Kong, October 1 - Tencent is revising its M&A strategy such that it would place a greater emphasis on acquiring the bulk of overseas gaming companies.

People with direct knowledge of the situation indicated that the reason for this is that internet giants are expanding globally to make up for China's poor domestic growth.

Over the years, Tencent Holding Ltd (0700.HK) has made investments predominantly in the onshore market in hundreds of emerging companies.

It has typically invested as a passive financial investor and obtained a minority ownership.

However, it is currently pursuing a majority or controlling position in overseas targets aggressively.

Four persons with direct knowledge of the situation specifically at gaming establishments in Europe told Reuters.

The transition occurs at a time when the top gaming company in the world by revenue is depending on international markets for its future growth.

This necessitates a substantial portfolio of top-grossing games, source support.

After two years of rift and uncertainty, Tencent's new approach demonstrates how China's internet giants are attempting to come out from under the regulatory shadow.

Which had an impact on his ability to sell the house, and his stock started to sell out quickly.

On a post-earnings call in August, Tencent's chief strategy officer, James Mitchell, stated that the company would continue to be aggressive in acquiring new game companies abroad.

In stark contrast to its far slower dealmaking pace domestically, Tencent is increasing its attention on international assets and markets.

because a number of domestic portfolio companies have been divested and the regulatory crackdown has become more intense.

According to Refinitiv data, the owner of China's most popular messaging service WeChat invested $75 billion domestically between 2015 and 2020.

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