Chinese internet giant Tencent surpasses Facebook in valuation

Gladys Abbott
November 22, 2017

Also Monday, Tencent beat Alibaba to become the first Chinese technology company to hit the $500 billion market capitalization mark.

Tencent is now valued at $523 billion, beating Facebook by $1 billion.

Noticeably, its major domestic rivals Alibaba, the country's e-commerce leader, and search engine provider Baidu are now valued at US$474.2bn and US$83bn respectively.

The company went public in 2004 at HKD 3.70 a share.

With a valuation of $48.3bn, Forbes magazine has stated that Tencent's chief executive, Ma Huateng, is worth more than the founders of Google, Larry Page and Sergey Brin.

Image source Bloomberg via SCMP
Image source Bloomberg via SCMP

As per analysts say that there's one challenge that China has to face is that its achieved success can't be exported to other markets so easily. Last week it said its profits had jumped almost 70 per cent.

Its messaging-to-payment superapp WeChat which has amassed 980 million monthly active users, with 38 billion messages sent daily, while its Youtube equivalent, Tencent Video, has become the video streaming service with the largest paying subscriber base in China.

Online and mobile games are a key part of the business - the division brought in over $4 billion in revenue last quarter. Its fantasy role-playing game Honour Of Kings will debut in the United States next year. The number is likely to increase after the company acquired a majority stake in the Finnish smartphone maker, Supercell.

Their genuine prowess aside, the Financial Times points out that the rise of China's tech giants has been greatly aided by Beijing's ban on the United States titans - Facebook, Twitter, YouTube and Google.

So it hasn't beaten the American social media company by a huge margin, however, the company has been experiencing a rally this year which has pushed its market value up $292 billion, a 127 percent rise just over this year. And while Amazon was let in, it was quickly quashed by Alibaba's Tmall and Taobao e-commerce sites.

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