Today, 4:41 AM
- China's top internet regulator has ordered major online companies including Sina Corp. (NASDAQ:SINA) Tencent (OTCPK:TCEHY), Sohu.com (NASDAQ:SOHU) and NetEase (NASDAQ:NTES) to stop original news reporting, tightening its grip over the country's web and information industries.
- President Xi Jinping has stressed that Chinese media must serve the interests of the ruling Communist Party, giving authorities near-absolute control over online news and political discourse.
Thu, Jul. 14, 4:31 AM
- Tencent (OTCPK:TCEHY) is boosting its stake in China Music Corp. to about 60% from 16%, in a deal that values the firm at roughly $2.7B.
- The agreement will turn China's biggest social-networking and entertainment company into a clear market leader of online music, bringing together the country's top-three mobile music apps.
- CMC owns Kugou and Kuwo, while Tencent operates QQ Music.
Tue, Jul. 5, 8:27 AM
- Tencent (OTCPK:TCEHY) is in talks with potential investors including the Canada Pension Plan Investment Board, China Investment and Hillhouse Capital to participate in its $8.6B acquisition of Supercell from SoftBank (OTCPK:SFTBY).
- According to a document viewed by the WSJ, potential participants in the consortium expect that an investment in Supercell could bring an average annual return of 36% in the next four years.
Tue, Jun. 21, 3:50 AM
- Tencent (OTCPK:TCEHY) has reached an agreement to buy Supercell Oy, the maker of the popular "Clash of Clans," in a deal that could turn the Chinese internet major into a global video game powerhouse.
- According to WSJ sources, details of the deal will be announced later today. It was previously reported that Tencent had been in talks with SoftBank (OTCPK:SFTBY) to buy the company's majority stake in Supercell at a $9B valuation.
- Update: Tencent and its partners will pay $8.6B to buy Softbank's (OTCPK:SFTBY) 84.3% stake in Supercell Oy.
Wed, Jun. 15, 1:03 PM
- Chinese messaging/gaming leader Tencent (OTCPK:TCEHY) is close to a deal to buy SoftBank's (OTCPK:SFTBF) controlling stake in Finnish mobile game developer Supercell at a ~$9B valuation, sources tell the WSJ.
- The paper, which first reported of Tencent's interest in Supercell last month, adds Tencent is talking with "several financial investors" to join the deal as co-investors. SoftBank had a 73% stake in Supercell as of last year. Supercell, responsible for Clash of Clans and other hits, was reportedly valued at $5.25B in 2015.
- The report comes as Tencent cautions its rapid ad sales growth (+73% Y/Y in Q1) is about to slow down.
Mon, Jun. 6, 10:07 AM
- Search giant Baidu (BIDU +1%), messaging/gaming giant Tencent (OTCPK:TCEHY), and #2 Chinese e-commerce firm JD.com (JD +1.8%) are each investing $50M in leading Chinese online auto platform Bitauto (BITA +12%). Bitauto is also selling $150M worth of convertible bonds to investment firm PAG.
- Baidu, Tencent, and JD are each buying 2.47M Bitauto shares at $20.23 apiece ($0.23 below Friday's close). The deal follows JD and Tencent's $1.55B 2015 investment in the company, and respectively leaves JD, Tencent, and Baidu holding 23.5%, 7.1%, and 3.2% stakes.
- The bonds are due five years from issuance, and carry a 2% interest rate and $23.67/share conversion price. Owners of the convertible debt will hold an 8.2% stake. Bitauto chairman/CEO William Li will be buying a portion of the debt through PAG, by means of a total return swap agreement.
- Bitauto is up sharply. Rival Autohome (ATHM +3.2%) is posting moderate gains. Li: "Through our new partnership with Baidu, we expect to leverage its leadership in mobile and desktop online search, big data and transaction services platforms for additional strategic advantages as we continue to create the industry leading new and used car purchasing experience for customers in China."
Mon, May 23, 11:10 AM
- Tencent (OTCPK:TCEHY +0.5%) is in early-stage talks to take over SoftBank's (OTCPK:SFTBY +1.9%) majority position in Finnish mobile-game maker Supercell, The Wall Street Journal reports.
- Supercell makes popular combat simulator Clash of Clans, and SoftBank took majority control with a $1.53B investment in 2013, before growing its stake last year to 73%.
- Also last year, Alibaba (of which SoftBank is the biggest shareholder) teamed up with China's Giant Interactive Group to talk about taking control of Supercell, though price has hung up those discussions. And Supercell is said to prefer having autonomy under SoftBank's umbrella.
- Sources say that Supercell was valued about $5.25B last year. Its most recent game, Clash Royale, was the top-grossing mobile game for March with more than $80M.
- Now read Tencent: Like Buying Facebook At A Bargain »
Wed, May 18, 11:53 AM
- Tencent Holdings (OTCPK:TCEHY) is down 1.4% in U.S. trading following Q1 results where revenues grew sharply Y/Y but the company warned of slowdowns ahead.
- Operating profits and revenues both grew 43%. Net profit was up 33% to 9.18B yuan.
- EBITDA of 14.33B yuan grew 44% and beat an expected 12.12B yuan.
- WeChat/Weixin numbered 762M monthly active users (up 39%), while QQ numbered 877M active accounts (up 5%).
- Tencent warned about ad inventory monetization in the nearer term: "While we are optimistic about the long-term growth potential of our online advertising business, our brand advertising business could face near-term challenges due to the uncertainties of macroeconomic environment in China."
- Analyst consensus is for Q2 EPS to come in flat sequentially at 1.06 yuan, and for revenues down 1.1% sequentially to 31.6B yuan and EBITDA down 13% sequentially to 12.49B yuan.
- Press Release
Wed, May 18, 8:57 AM
Fri, Mar. 25, 5:50 AM
- "If you took our top 30 cities today, today they're generating over $1B in profit a year, just our top 30 cities. And that profit multiplies every year because we're growing," Uber (Private:UBER) CEO Travis Kalanick said in an interview yesterday. "That helps us to sustainably invest in our Chinese efforts... Because of the profits we have globally, this is something we can do for the long run."
- In February, Uber said it was losing more than $1B a year in China's red-hot ride-hailing market where it is battling with Didi Kuaidi, backed by Chinese technology giants Tencent (OTCPK:TCEHY, OTCPK:TCTZD) and Alibaba (NYSE:BABA).
- "The key for (us in) China is to move fast," he said. "If we launch in the U.S. and then it gets copied in China, we'll be behind. So we're starting to orient some of our innovation at China first."
- Now read Interview With An Angel Investor »
Thu, Mar. 17, 6:28 AM
Fri, Feb. 26, 3:59 PM
- Glu Mobile (GLUU -2%) has seen Chinese partner Tencent (OTCPK:TCEHY) gradually but quickly boosting its stake in the company to 21.5% during Glu's February run.
- Glu shares have risen 68.3% over the past month, jumping in particular after posting its Q4 earnings beat and announcing exclusive work on a game themed on pop superstar Taylor Swift.
- Tencent acquired millions of shares of Glu on the open market between Feb. 8 and Feb. 25, according to a 13D/A filing today. That included acquiring more than 3M shares over the past three days.
- Glu said in November that it would work to bring Tencent's game WeFire outside China to the Americas, EMEA and Australia/New Zealand.
Wed, Feb. 24, 3:56 PM
- With Viacom (VIA +1%, VIAB +0.3%) looking to sell a strategic stake in Paramount Pictures, who could be interested in buying?
- Foreign investors are likely, amid a wave of investment in Hollywood from overseas. China's Perfect World is putting $250M into a development slate at Universal, while in-country counterpart Bona Film Group said in November it was putting $235M into a slate at Fox.
- Analysts suggest the studio is worth about $5.5B today, notes The Hollywood Reporter, so a minority stake could still come to $2B. Viacom paid $9.8B for the studio a dozen years back.
- Major conglomerates like Alibaba (BABA +0.6%), Dalian Wanda and Fosun (OTCPK:FOSUF) have an appetite for Hollywood deals -- and Wanda already owns cinema chain AMC and producer Legendary Entertainment, while exploring a stake in Lions Gate. A key interest with those firms is ability to get Paramount products into China, where Transformers is a major phenomenon. Tencent (OTCPK:TCEHY +0.2%) has similar international media appetites.
- Fosun is trying to buy Bona and take it private, which would give it Bona's entry into Fox's slate.
- Back home, Lions Gate (LGF +8.8%) is now a frequent source of tie-up rumors -- and is on the move today amid Amazon.com (AMZN +0.1%) content-deal chatter. Both Lions Gate and Amazon could use a piece of Paramount for different reasons.
- Meanwhile, Apple (AAPL +1.5%) has been floated as a possible bidder for Time Warner, as it may be shopping for content to feed TV dreams -- but a stake in Paramount would come far cheaper than trying to swallow Time Warner whole for $50B-$80B.
- Previously: Viacom, up 5%, confirms Paramount investment feelers (Feb. 23 2016)
Wed, Feb. 3, 12:05 PM
- In a multiyear partnership, ESPN (DIS +1%) and Chinese Internet leader Tencent Holdings (OTCPK:TCEHY -2%) will pair to offer games and commentary in Mandarin.
- Financial terms weren't disclosed. Tencent's sports site, QQ, will get live streams of the NCAA men's basketball tournament (March Madness) along with 100 other college basketball games, the X Games, and ESPN analysis for the NBA playoffs and soccer matches starting in April.
- Most NBA viewing in China happens on computers or mobile devices via the Internet. The deal's an example of Disney's country-by-country approach to expanding ESPN and Disney content; traditional pay TV is still the focus in the U.S., while online distribution is taking the lead in other markets.
Thu, Jan. 7, 2:00 PM
- Hammered three days ago as U.S. and Chinese markets tumbled, the story is much the same today for U.S.-traded Chinese tech firms. The Nasdaq is down 2.7%, and the Shanghai and Shenzhen exchanges respectively fell 7% and 8.3% overnight amid an ongoing selloff in the yuan, which now trades at 6.59 per dollar.
- The Guggenheim China Tech ETF (CQQQ -4.7%) is now down 8% in 2016. It's still 30% above an August low of $25.36.
- Internet giants Baidu (BIDU -7.1%) and Alibaba (BABA -6.5%) are among the names seeing steep losses. Others include Sina (SINA -6%), Weibo (WB -8.5%), Qunar (QUNR -12.4%), JD.com (JD -6.4%), ChinaCache (CCIH -9.6%), Jumei (JMEI -8.7%), Zhaopin (ZPIN -5.7%), Baozun (BZUN -7.4%), NQ Mobile (NQ -5.8%), and Momo (MOMO -6.1%). Over in Hong Kong, messaging/gaming leader Tencent (OTCPK:TCEHY) fell 4%.
- ETFs: QQQC, KWEB, EMQQ
Dec. 30, 2015, 10:36 AM
- Cheetah Mobile's (CMCM +0.7%) alliance with Chinese messaging/gaming giant Tencent (OTCPK:TCEHY), originally signed in Dec. 2013, has been extended through Dec. 31, 2017.
- Through the deal, each company provides promo/ad services on the other's platforms. It now respectively features proposed annual caps of RMB495M ($76M) and RMB587M ($90M) for payments from Tencent to Cheetah in 2016 and 2017. Proposed caps for payments in the opposite direction are at RMB30M ($5M) and RMB45M ($7M) for 2016 and 2017.
- Through the end of November Tencent had paid Cheetah RMB272.5M ($42M) in 2015 for promo services, and Cheetah had paid Tencent RMB42.7M ($7M).
Tencent Holdings Limited provides Internet, mobile, and telecommunication value-added services in China. The Company has an instant messaging community in China. Tencent also provides online advertising services.
Industry: Application Software
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