Tencent Holdings Limited

Tencent Holdings Limited

Tencent Holdings Limited, frequently branded as Tencent, is a Chinese multinational conglomerate that concentrates on numerous Internet-related services and products. The company was founded in 1998 and has grown into one of the world’s largest and most valuable corporations, with a market capitalization of over $1 trillion as of early 2021 (Ho, 2021). Tencent has numerous value drivers have added to its success over the years, including social networking, gaming, fintech, and cloud computing. One of Tencent’s most substantial value drivers is social networking. The business’s social media platforms, such as WeChat and QQ, are among the most common in China, with over a billion monthly active users (Ho, 2021). These platforms permit the company to amass vast quantities of user data, which the business can leverage for advertising and other determinations (Ho, 2021). In addition to its social media platforms, Tencent possesses numerous other popular social networking products, such as Qzone and Pengyou.

Gaming is another value driver of the company. Tencent is one of the world’s largest gaming companies, with a vast portfolio of widespread games such as PUBG, Fortnite, and League of Legends (Sayibu et al., 2021). The business’s dominance in the gaming industry is a substantial value driver for Tencent, as the gaming market is projected to continue growing in the coming years. In addition to its gaming products, Tencent has substantial investments in other gaming businesses, such as Riot Games and Epic Games. Tencent’s fintech arm, Tencent Financial Technology, is also a substantial value driver for the company as it offers a range of financial products and services comprising mobile payments, wealth management, and insurance (Sayibu et al., 2021). The business’s fintech services are among the most prevalent in China, with over a billion users. Tencent Financial Technology also owns numerous financial services products, such as WeBank and Tencent Credit (Sayibu et al., 2021). Moreover, the company’s cloud computing services are becoming a progressively substantial value driver for the business. It is one of the fastest-growing cloud computing providers in China, providing various services, such as data storage, AI, and IoT. With more companies moving to the cloud, cloud computing services are anticipated to become a progressively substantial part of their business.