In recent months, Tencent has been throwing its weight around as inexorably as a business behemoth can. The Chinese conglomerate has been adding rich and diverse assets to its eSports portfolio at a pace that can only be described as breakneck and at sums that can only be called staggering, reaching several hundred million at a time.
Chinese eSports livestreaming platform Douyu TV may be looking past its home country in a bid to inveigle itself into the good graces of Western Gamers. According to the Financial Times, the platform may now be considering a U.S. Initial Public Offering, with rumors about a Hong Kong IPO also making the news on more than one occasion.
Tencent All Over the Place
Tencent has been quite reluctant to cease its participation across multiple platforms. Apart from investing the staggering $632 million in Douyu, the company though it necessary to also throw additional $461.6 million in its rival, i.e. Douyu’s, Huya. In June, Huya also went through an IPO, with its share prices going all the way up to $48 per share.
Not only that, but Douyu quite effortlessly controls estimated 70% of China’s eSports market insofar as streaming goes. Viewership are fluctuating constantly, with the global numbers going up at a rapid pace, albeit Duoyu has estimated 30 million daily active users.
Douyu knows how much it is worth and is seeking to add more to its capital, between estimated $600 million and $700 million all through an IPO. Given Tencent’s history of investment into the company it’s hardly surprising that the company wants to raise such whopping figures right off the bat.
Tencent in the World of Esports
No other company has invested as much into eSports as has Tencent. With its quarterly results soaring, the company has been involved in many diverse activities, including bringing eSports in the United Kingdom and building a theme park dedicated to eSports in Hong Kong.
Tencent has also bought significant shares in the Battle Royale Genre, snapping up rights for the distributions of both Fortnite and PUBG in China, and allowing itself a leadership position.
The company has been seeking to entrench itself not only at home, but abroad, becoming the go-to, no-alternative solution for all eSports enthusiast whatever the need may be. From streaming games to taking a crash course, Tencent has been working on establishing itself firmly into the field.
No Competition at All
While Tencent will continue to command the majority of market assets, the eSports system provides enough unique solutions that stand out on their own so that they may compete freely with any sort of challenge.
Still, the all-inclusive approach demonstrated by Tencent reminds that of a Silicon Valley giant which is consuming all the minnows of the industry and rallying them under their own banner. This is especially true about some of the most popular titles, including PUBG, League of Legends, and Fortnite.
As Tencent’s involvement in the sector increases, we ought to ask ourselves if that’s necessarily healthy.