With a market capital of above $100 bn, Tencent is the Chinese dragon when it comes to mobile and online presence. Most famous for WeChat, Tencent is also the name behind QQ- the online instant messenger with 818 million monthly active users, which has remained the standard way for Chinese to stay in touch over the past 15 years; and Weibo – its Twitter-equivalent in China that is particularly popular in Tier-II and Tier-III cities.
Here are a few interesting facts about the internet odyssey:-
1. A digital revenue stream very different than any of the valley stalwarts
It has found a gold mine in virtual goods. These goods can range from ways to personalize your online gaming avatar with clothing and makeup to new wallpapers and ringtones for your phone. Although these purchases may seem silly to some, the company rakes in billions of dollars through these types of transactions.
2. A handful of hit games fuel most of its revenue
According to Barclays Bank research, CrossFire and Dungeon and Fighter are the two games that make up 60 percent of the company’s gaming revenue, and it’s the fanatical users, who are willing to pay up to improve the skills of their avatar or acquire new weapons, that really keep the money flowing.
3. Soon, Tencent will be bigger than Facebook
Tencent is much closer to overtaking Facebook as the world’s top social network than most people think. Currently, the combined number of users for WeChat and QQ is estimated at 1.054 billion, which is only around 200 million less thanFacebook’s worldwide user base.
4. It’s coming to the U.S. with a flanking strategy rather than head on
Coming in as a “silent” investor is a key piece to Tencent’s strategic move. It provides Tencent with a relatively cheap ticket for entry into the U.S. market, whereas if it came in with a big bang, it would be rather politically sensitive for the company.
5. WeChat serves as a “booty call” app in much of the world
WeChat is the only messaging app in the space with an age requirement of 17 years or older for download. There is a very clear reason for this. It has a popular “Shake” function, which displays photos and whereabouts of nearby users wanting to meet new people.
6. China’s reputation could hurt Tencent’s global outlook
China has upset a few of its neighbors recently and has become aligned with actions like hacking, censorship, and Internet piracy, which could limit Tencent’s prospects overseas.