Tencent’s Video & Gaming Content Investments are Paying Off
Lulu Yilun Chen reporting for Bloomberg Technology:
"Tencent Holdings Ltd.’s investments in blockbuster video and gaming content are paying off — big-time.
"China’s largest internet company posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles including Honour of Kings drove a billion-plus users on WeChat and QQ to spend on game items. Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the company into a hybrid Marvel Studios-Netflix style content factory.
"Soaring growth at Tencent’s mobile gaming and advertisement units is buying the company time to develop new channels of revenue in finance and cloud, and bankrolling a foray into Hollywood. After backing “Kong: Skull Island,” the company is helping finance the upcoming summer tent-pole “Wonder Woman.” A market value of about $320 billion underscores how China’s online titans, including Alibaba Group Holding Ltd., are outstripping traditional state sectors and defying a slowdown in the world’s second-largest economy."
Header image from Business Insider.