Tech investment conglomerate Tencent is one of the largest companies in the world, having reached this level of success by aggressively investing in a number of different ventures. Some may know them for founding the messaging app WeChat, but the company is also known for its huge investments in gaming. Tencent has acquired a number of companies, or a majority stake in those companies, as it expands its portfolio.
Now the company appears set to invest heavily in esports, a part of the gaming revenue pie that has steadily grown in recent years. The Overwatch League doled out nearly $3 million to the San Francisco Shock, who took home the title, so there is certainly money to be made in the esports scene.
Tencent wants to get in on the action, and is leading a $100 million investment in Chinese esports company VSPN (Versus Programming Network). VSPN is a “pioneer in esports tournament organization and content creation” and has become the “principal tournament organizer for PUBG Mobile international competitions” among other things. It is a company that is expanding its operations, so it should come as no surprise that Tencent would like a piece of it. This is not Tencent’s first foray into esports, as the company signed an esports collaboration deal with Barcelona FC this summer, and through other investments well-entrenched in the scene.
The company’s investment in a number of North American based companies has landed it in hot water with the United States government in recent months. As part owner of Epic Games, Tencent has been under scrutiny for privacy concerns relating to data collection. This issue is a thorny one in the intelligence community, but VSPN is based in China, so this latest venture by Tencent shouldn’t ruffle feathers in the United States.
Tencent’s investment in VSPN shouldn’t come as too much of a surprise to those paying attention. As mentioned above, it is the principal tournament organizer for PUBG Mobile, a title developed by LightSpeed & Quantum Studios, which is a developer under Tencent’s umbrella. To pick up the company that promotes their game’s tournaments is a logical step. The game development branch has also been busy, as Tencent recently founded a game studio in Los Angeles, LightSpeed LA, and hired some big name talent to lead it, though no titles have been announced yet.
While the Tencent branding might not make it on to too many products that western gamers are familiar with, their investment in a number of big developers and in the esports scene shows why Tencent is the biggest player in gaming today.
Source: VSPN
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