Tencent reveals next step in ambitious eSports plan
Chinese internet giant, and global market leader in mobile gaming, has revealed the next step in its plan to create a $15 billion eSports industry in China by 2022. The company has recently announced that it’s investing in Chinese eSports tournament operator and production company, Versus Programming Network (VSPN). This is a big move forward – but it also highlights how far Tencent has already extended roots into this nascent industry… as the company already holds numerous interests that connect with VSPN in one way or another.
Tencent’s share price has increased by 8% over the last 30 days
SOURCE: Yahoo Finance
Tencent’s plans for the future of eSports in China include establishing eSports leagues, tournaments and associations, as well as “eSports-themed industrial parks”. When you look at the incredible growth eSports is currently undergoing, that looks like a plausible (if ambitious) goal.
VSPN is a subsidiary of Hero Entertainment, and Tencent owns a stake in Huayi Brothers, which invested in Hero previously. Tencent also has influence over a number of games and gaming companies that VSPN organizes operations for, such as Honour of Kings, Supercell’s Clash Royale, PUHG Corp’s Playerunknown’s Battleground, Riot’s League of Legends, and others.
According to Tencent, China is already the world’s biggest eSports market. Yet, there is no doubt that eSports will grow both in China and worldwide. This latest acquisition is Tencent’s next step in assuring it has a prominent place in the industry as it grows to maturity.
Dominion holds Tencent in its Global Trends Ecommerce Fund.
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