Why is Tencent shutting down?

Tencent is shutting down its video game streaming platform months after Beijing shut down a huge merger that would have made the Chinese internet giant a major player in the area. The service Penguin Esports will shut down from June 7, Tencent said, citing a change of business strategy.

What went wrong with Tencent?

Tencent said Monday it had fired more than a hundred employees for violating company policies. Those accused were found to have embezzled company funds and accepting bribes, it added, with a number referred to police and some found guilty in court.

Why did China suspend Tencent?

GUANGZHOU -- China's Tencent Holdings and other major gaming vendors in the country are shutting down their games nationwide on Tuesday in an apparent tribute to late President Jiang Zemin, amid Beijing's tightening oversight of the gaming industry.

Why is Tencent buying everything?

Tencent is allegedly shifting its M&A strategy to "aggressively" focus on "buying majority stakes mainly in overseas gaming companies." As reported by Reuters, this change is in part due to Tencent's attempt to battle the slowing growth in its home country of China.

What is the controversy with Tencent Games?

What is the Tencent Holdings controversy? Tencent Holdings said on Monday that it fired more than 100 employees for bribery and embezzlement last year, and it blocked 23 companies from doing business with the Chinese social media and video gaming giant.

China destroyed its tech giants. Here's why.

Why does Tencent have a bad reputation?

Tencent and online censorship

Privacy advocates have found that Tencent has shared the conversations of users of their applications with the Chinese government. The company has also used artificial intelligence to identify and block user-created images created to get around government censorship by Chinese citizens.

Why have China banned gaming?

Earlier this month, Chinese media described video games as an “opium for the mind” and “electronic drugs”, with parents saying children have been playing games for seven hours per day, with a detrimental affect on their scholastic performance. What does the ban include?

Should I hold Tencent or sell?

Tencent has received a consensus rating of Hold. The company's average rating score is 2.20, and is based on 2 buy ratings, 2 hold ratings, and 1 sell rating.

Why is Alibaba better than Tencent?

Business Focus

One difference between Alibaba and Tencent is the percentage of their revenue coming from foreign (non-Chinese) markets. Only 7% of Alibaba's revenue comes from international sources, in Tencent's case it's 8%.

Does Tencent own TikTok?

Tencent Holdings, a Chinese multinational conglomerate, is an investor in ByteDance but does not have a majority stake in or control over TikTok.

Does China still ban Google?

Google's Internet mail service, Gmail, and Chrome and Google-based search inquiries have not been available to mainland China users since 2014.

What happened to Tencent in China?

Tencent Holdings Ltd. In 2021, CCP's infamous crackdown resulted in a $1.5 trillion value obliteration from its tech stocks, with Tencent dropping from about $700 billion market cap to $560 billion. 2022 turned out even worse, with the company currently valued at about $325 billion, losing over half its value YTD.

Will China ban gaming?

Most notably, in September 2021, China banned under-18s from playing games for more than three hours a week, a rule that has forced Tencent and its peers to give up targeting youth gamers.

Will Tencent go back up?

We expect Tencent to retain strong liquidity, and its FCF generation to remain quite large and rise to over CNY100 billion in 2023. Depending on how it uses cash raised from divestments, Tencent could restore its net cash position earlier than we expect, which is by 2024.

Will Tencent go up again?

Will Tencent go up again? Conclusion. I think that Tencent continue to have strong growth drivers across all its main businesses. With improvements in the macroeconomic environment, relaxing of covid-19 measures in China and China's renewed focus on growth, we will see a strong ads revenue growth in 2023, in my view.

How does Tencent make so much money?

The Multi-Faceted One: Tencent

An increasingly important section for Tencent are payment services (included in 'Other' with 24.9%), which mostly refers to fees for online transactions through WeChat Pay. Other than that, Tencent makes money with digital ads on its media platforms and messengers (18.5%).

Who is Tencent biggest competitors?

Tencent's competitors include Mindbody, Robosoft, Appfire, Metova. Tencent ranks 21st among 5581 active competitors.

Who is Alibaba rival in China?

alibaba.com's top 5 competitors in January 2023 are: aliexpress.com, made-in-china.com, dhgate.com, globalsources.com, and more.

Who is Alibaba biggest competitor in China?

JD.com is one of Alibaba's primary domestic competitors in the ecommerce space. Alibaba also faces smaller national competitors and local upstarts across the Chinese landscape, including the Chinese ecommerce site Pinduoduo.

Why is Tencent stock so cheap?

Andrew Willis: Tencent (TCEHY) stock has been declining for about a year-and-a-half now, and this trend has continued with a recent drop in the company's advertising business in Q1 due to regulations imposed on the advertisers in China's education and real estate sectors.

Who owns the most Tencent stock?

Who is buying Tencent?

China's government is buying Alibaba and Tencent shares that give the Communist Party special rights over certain business decisions, report says. The letter F. An envelope.

Is Nintendo banned in China?

In July 2015, the ban on video game consoles within the country was completely lifted. According to a statement from the country's Ministry of Culture, companies like Sony, Nintendo, and Microsoft – among others – were now allowed to manufacture and sell video game consoles anywhere in the country.

What games are illegal in China?

Games that depict drugs, sexuality, blood, organized crime or defamation of the Chinese government are almost always banned. Because of the large size of the Chinese video game market, many studios edit the content of their games to conform to the government's standards.

What is the biggest game company in China?

The Chinese entertainment tycoon Tencent remains dominant in the mobile gaming arena.