Tencent plans to earn more in the remaining half of the year

Tencent plans to earn more in the remaining half of the year

It is largely not goo when a technology firm decides to buy more and build less but Tencent has proven to be different. The Chinese giant company has topped $66 billion with investments in fintech, music and more; some of their recent deals explains the deal spree. Two years ago, a local tech journalist wrote an essay titled “Tencent has no dream”, this spread throughout the country as the reporter accused the firm which created WeChat. the first all-in-one text mega-app, of losing focus and turning into a business bank. That same year, Tencent CEO Pony Ma went on a buying spree, raking up stakes in everything from Amer Sports, a firm from Finland that produces tennis racquets and other gears.

He acquired properties from Dalian Wanda's

He acquired properties from Dalian Wanda’s commercial company making his moves unclear to the public. It is predicted that the firm had a record 163 holdings in 2018, averaging three per week. Amid the global outbreak, the company shows no signs of stopping. They recently bought a video streaming service from Malaysia and small shares in Universal Music and Warner Music, also rumored to Chinese top $17 billion iQyi according to Reuters. The firm stands out globally; US rivals prefer buying specific targets such as Facebook purchase of Whatsapp and Instagram or Apple’s purchase of Beats.

Tencent plans to earn more in the remaining half of the year

There is a company with enough assets to match Tencent and that is $580 billion Alibaba. The e-trade firm earned $50 billion in March, a quarter less of their top rival. Alibaba likes to handle other business units fully including food delivery and video streaming while Tencent prefers small shares outside video-games and others. Martin Lau, the firm investment director and James Mitchell are seen as the power horse behind the firm buying spree. At a conference in January Lau revealed that the firm had bought shares in more than 800 companies since 2008, a fifth of those companies priced at $1 billion or more.

Many of the company’s deals are well on track, in 2012, Tencent bough a 40% share in US gaming firm Epic Games at a price less than $1000000000000. In addition to that, Tencent is seen raising money at a $17 million price according to Bloomberg. Chinese top rival PInduoduo which Tencent helped in its early days, is worth over a hundred million now. Its New york acquisitions have increased since the company started in 2018. Most giant companies are known to keep secrets but it’s been different for Tencent.

The firm reveals more these days including its annual earnings on investment. It also created a different site for the values, however, some deals are still not revealed yet. Messaging app operator Snap said in its yearly review that because of its money structure neither it nor Tencent are bound to say whether anything happens to the shares the Chinese firm bought a few years ago. There may have been minimal accomplishments. Analyst Mark Artherton, who is a writer on Smartkarma, estimates that more than 80% of Tencent’s balance sheet is in cash and businessesthat generate significant gains.