Tencent on top of its games
International mobile games are increasingly important for Tencent, growing ahead of its China revenues. Tencent is also acquiring content through acquisitions. Tencent is currently in exclusive talks to acquire Leyou Technologies, the Nasdaq and Hong Kong listed games developer. This is not a small company, with a huge market cap. With the Chinese government having an inclination to regulate content when it sees the need to Ingham Analytics sees more geographic diversification. Meantime, Prosus can only look on with envious eyes at the juggernaut that is Tencent – and suffer the indignity of the discount to the see-through value of its stake in Tencent widening yet again. The graphic on this is telling. Ingham Analytics have taken profit on Tencent lately because of substantial growth in the share price beyond growth in expected earnings – further detail on this and Tencent developments are contained in the note.
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