Tencent
Tencent Holdings Limited is a Chinese multinational investment holding conglomerate founded in 1998, whose subsidiaries specialise in various Internet-related services and products, entertainment, artificial intelligence and technology both in China and globally. Its twin-skyscrapers headquarters Tencent Seafront Towers (also known as Tencent Binhai Mansion) are based in Nanshan District, Shenzhen.
Tencent is the world's largest gaming and one of the world's most valuable technology companies, and one of the world's largest venture capital firms and investment corporations. Its many services include social network, music, web portals, e-commerce, mobile games, internet services, payment systems, smartphones, and multiplayer online games, which are all among the world's biggest and most successful in their respective categories. Offerings in China include the instant messenger Tencent QQ and one of the largest web portals, QQ.com.
It also owns the majority of China's music services (Tencent Music Entertainment), with more than 700 million active users and 120 million paying subscribers. The company surpassed the market value of US$500 billion in 2018, becoming the first Asian technology company to cross the valuation mark. It has since then emerged as one of Asia's most valuable companies, and among the worlds top technology companies by market value. Tencent has been credited as one of the world's most innovative companies by numerous media and firms, including Boston Consulting Group. As of 2018, Tencent has the 5th highest global brand value.
Tencent controls hundreds of subsidiaries and associates in numerous industries and areas, creating a broad portfolio of ownerships and investment across a diverse range of businesses including e-commerce, retail, video gaming, real estate, software, virtual reality, ride-sharing, banking, financial services, fintech, consumer technology, computer technology, automobile, film production, movie ticketing, music production, space technology, natural resources, smartphones, big data, agriculture, medical services, cloud computing, social media, IT, advertising, streaming media, artificial intelligence, robotics, UAVs, food delivery, courier services, e-book, internet services, education and renewable energy. It is one of the most active investment corporations in the world, with recent focus on start-ups within Asia’s burgeoning tech scene.
Tencent was founded by Ma Huateng, Zhang Zhidong, Xu Chenye, Chen Yidan and Zeng Liqing in November 1998 as Tencent Inc. Incorporated in the Cayman Islands, initial funding was provided to it by venture capitalists. In February 1999, Tencent's messenger product OICQ released. Shortly after, Tencent had its name changed to QQ; this was said to be due to a lawsuit threat from ICQ and its owner AOL. The company remained unprofitable for the first three years. South African media company Naspers purchased a 46.5% share of Tencent in 2001. (As of 2014, it owns 34%.) Tencent Holding Ltd was listed on the Hong Kong Stock Exchange on 16 June 2004, and it was added as a Hang Seng Index Constituent Stock in 2008.
The company originally derived income solely from advertising and premium users of QQ, who pay monthly fees to receive added extras. But by 2005, charging for use of QQ mobile, its cellular value-added service, and licensing its penguin character, which could be found on snack food and clothing, had also become income generators. By 2008, Tencent was seeing profit growth from the sale of virtual goods. While Tencent's services have included online gaming since 2004, around 2007–2008 it rapidly increased its offerings by licensing games. While at least two, CrossFire and Dungeon Fighter Online, were originally produced by South Korean game developers, Tencent now makes its own games.