TikTok’s interest in gaming worries Tencent and responds

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Tencent is one of the largest gaming companies in the world thanks to its strategic investments which have allowed it to generate record revenues. However, it is not the only company interested in this market, and ByteDance, the owner of TikTok, is already making investments in the gaming world. This makes Tencent nervous and this is how she responds.

according to South China Morning NewspaperSo far in 2021, ByteDance has invested in 8 gaming companies, including Moonton Technology, which is responsible for Mobile Legends: Bang Bang. This situation has created new obstacles for Tencent, as it means that it already has competition when making investments. It also means that other companies are starting to make gains in gaming.

Faced with this situation, Tencent has responded by investing like never before with the goal of keeping the competition at bay. This year, the Chinese giant has invested in 62 different gaming companies. This means that they sign, on average, a new agreement every 3 days.

With this, Tencent has already doubled its total investment in 2020 (31 agreements). It also means that you have already invested 5 times what you invested in the whole of 2019.

Tencent has faced significant competition from tech giants such as Alibaba and ByteDance over the past year. [También hubo juegos hechos por desarrolladores pequeños que se volvieron éxitos y amenazas [para Tencent]Ahmed reassured.

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Authorities seek to avoid Tencent monopoly

A firm investing too much in the same industry always generates fear: it could become a monopoly. This is something authorities in various countries are seeking to prevent with Tencent and the company has acted appropriately.

What is happening is that the Chinese government body that regulates the market is investigating the merger between DouYu and Huya, Twitch-like streaming platforms that are now owned by Tencent. They are also analyzing whether they will punish them for their domination of the world of streaming music in China.

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One of the measures Tencent has taken to avoid similar headaches is to get little involved in the companies it invests in. “Tencent invests in a ‘quiet’ manner, which means they don’t rebrand their companies and generally let them do the excellent work that has made them so attractive to Tencent. We call that Tencent’s silent pursuit of global gaming dominance,» Ahmed said.

This would not be the only problem Tencent seeks to avoid. For example, in 2021, Tencent did not invest in any video game company in the United States. The above follows the geopolitical tensions that prompted the authorities of this country to investigate its investments in Riot Games and Epic Games.

And you, what do you think of what is happening among the Chinese gaming giants? Tell us in the comments.

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