Tencent Holdings Ltd is flirting with $1 trillion valuation. Tencent, for those who don't know, is China's largest internet & entertainment company. To be flirting with $1 trillion is a big deal. Let's put this into perspective, only 5 companies globally are larger (by market capitalization) and worth more than $1 trillion (Apple $2.3, Saudi Aramco $1.8, Microsoft $1.8, Amazon $1.7, Alphabet - formerly Google $1.4).
Why this matters? Tencent is very important for the industry as they continue to accelerate their gaming company acquisitions. Back in 2008, Tencent established an investment and Mergers & Acquisitions (M&A) unit. Since 2015, this company has been funding over 100 companies per year! While not every investment is gaming focused, they have been very active in the gaming world.
See a few of Tencents gaming portfolio companies below.
- Riot Games (LoL) - Tencent owns 100%
- Epic Games (Fortnite) - 40%
- Bluehole (PUBG) - 11.5%
- Ubisoft (Assassin's Creed, R6) - 5%
- Activision Blizzard (COD, Overwatch, WoW) - 5%
- Grinding Gear Games (Path of Exile) - 80%
This is just a few - the list goes on, and on, and on... If we solely look at 2020, Tencent invested in 31 games. Tencent is here to win.