Tencent to Buy Gaming Company?
As the Metaverse hype continues into 2022, we expect big fish to swallow small fish as the need to build a Metaverse infrastructure resonates with any company that is even related to media. The most recent rumor-mongering, and there are plenty of Reddit (pvt)-based sources in the VR space, says China’s internet giant Tencent (700.HK) is ripe to purchase gaming smartphone producer Black Shark (pvt), a five year old company whose largest corporate shareholder is Xiaomi. The company has released a number of gaming smartphones over the last few years and has earned a reputation as a high performing gaming device, but there are questions as to whether Tencent will continue to produce Black Shark smartphones if it makes the acquisition.
The deal, which is said to be valued between $408m and $424m, has the blessing of Xiaomi, as an investor in the company, but while the Black Shark company store advertises its phones, and a variety of accessories, the word is that Tencent is more interested in the company’s VR capabilities as part of a developing ecosystem for VR overall at Tencent. While there is little about Black Shark’s VR gaming expertise the company promotes itself as working toward developing a gaming ecosystem including hardware, software, and service, so we have to assume that Tencent sees a layer of product expertise that is not visible directly.
The deal, which is said to be valued between $408m and $424m, has the blessing of Xiaomi, as an investor in the company, but while the Black Shark company store advertises its phones, and a variety of accessories, the word is that Tencent is more interested in the company’s VR capabilities as part of a developing ecosystem for VR overall at Tencent. While there is little about Black Shark’s VR gaming expertise the company promotes itself as working toward developing a gaming ecosystem including hardware, software, and service, so we have to assume that Tencent sees a layer of product expertise that is not visible directly.
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