Tencent Is Worth Significantly More Than the Name Implies
According to a recent report, Chinese gaming giant Tencent was close to a $1 trillion market value after its biggest surge in over a decade on Monday. Though the company didn’t quite reach $1 trillion thanks to a 5.5% loss in Hong Kong on Tuesday that took it down to $900 billion. Upon reaching $1 trillion, Tencent will become China’s second company to reach such heights. Tencent is the mind behind mobile megahits such as PUBG Mobile and Call of Duty: Mobile.
While Tencent has fallen back down to a $900 billion value, the Chinese gaming company will likely return to the $1 trillion mark and perhaps even exceed it. Tencent has been investing in many game developers over the years and the company acts as a backdoor into the market for big franchises such as Call of Duty, PUBG, and The King of Fighters.
The only other Chinese company to reach $1 trillion was PetroChina Co, which reached its trillion-dollar valuation in 2007 and has collapsed since. Currently, there are only a handful of companies from around the world to reach $1 trillion valuations: Apple, Amazon, Alphabet, Microsoft, and Saudi Arabian Oil Co. Tencent isn’t limited to only video games, with many of its ventures delving into social media and e-commerce, but PUBG Mobile and Call of Duty: Mobile continue to earn the company a lot of money and interest.
Are you surprised by what a giant Tencent has become? Let us know in the comments below!