Tencent: Money Not Enough

Tencent wants more money. USD 30 billion in all.

The Chinese internet titan did not say why it needed the money. But no prizes for guessing it will likely be spent on another shiny new toy.

The operator of messaging app WeChat, online game Honor of Kings, music streaming service Tencent Music, and countless other offerings, has spent at least USD 12 billion on 163 start-ups in 2020 alone, according to a March 2021 Nikkei Asia report.

Tencent’s move for more money can be seen as antithetical as it comes at a time where many expect China to rein in big tech. In March 2021, it was fined by regulators for not declaring acquisitions, which was deemed to be against anti-monopoly rules.

To the optimist, Tencent’s potential continued acquisition spree can be seen as a positive as it appears to be confident enough to pursue dominance, while toeing the fine line of regulatory compliance.

Tencent on Monday bumped up its global medium-term note (GMTN) programme – basically the sale of debt securities to investors – to USD 30 billion from USD 20 billion announced previously. It has already sold USD 18 billion since 2014.