China’s Tencent Sees Market Cap Hit $66 Billion, Passes Facebook [UPDATED: Not Yet!]
Mark your calendars: China’s social media giant has surpassed America’s leader in terms of the total value of their shares. Yes, Tencent’s (HKG:0700) market cap is greater than Facebook’s (NASDAQ:FB) right now, with Tencent’s market capitalization currently at HK$419.84 billion –
that’s US$66.6 billion – compared to Facebook’s $62.24 billion.
[UPDATE July 20th: Thanks to a reader for pointing out that I hit the wrong currency conversion option, using Chinese RMB rather than Hong Kong dollars. So, doing the correct conversion, the Tencent market cap was actually $55 billion yesterday, still somewhat short of Facebook's level. Sorry for the false alarm. But it's going to happen soon!].
Tencent listed on the Hong Kong Stock Exchange in June 2004 priced at HK$3.70 per share. It’s trading right now at HK$228. It’s a significant moment for Tencent, which runs a number of social services in the country that are the biggest in their field: the biggest in social gaming; the biggest in group messaging apps with WeChat; the biggest in instant messaging with QQ, the biggest in online profiles with QZone; and the biggest in microblogging with Tencent Weibo .
If we look at the country’s top social services – in this excerpt from an infographic on China’s rising social media – you’ll see that three of them are Tencent’s:
But Tencent is not invincible. It has struggled in a number of crucial areas as well. One of the biggest failures has been in e-commerce where its own efforts – with Paipai for C2C selling, and QQ Buy for B2C and online storefronts – have come to little, and been out-gunned by Alibaba’s Taobao and Tmall sites. In mobile, too, it hasn’t co-ordinated quite the same coherent mobile strategy of some of its rivals, like Baidu and Alibaba, which have gone so far as to create their own mobile platforms and smartphones.
Nonetheless, Tencent is a force to be reckoned with both at home and abroad, and its rise in value and continued diversification should serve as a lesson to Facebook. Remember when Facebook bought that group messaging startup called Beluga? Well, nothing came of it. It was just an acquisition for talent. But when Tencent saw the potential of group messaging apps for smartphones, it went ahead and created its own – WeChat, or “Weixin” in Chinese – and it’s now the most used app of its kind in the world with over 100 million users. And it did that pretty organically, without forcing its QQ users into it. Facebook, as Zuckerberg surely knows in private, is a bit of a one-trick pony, and is very vulnerable to, say, social gaming companies pulling out, or to the rise of Google+. But there’s no-one that could take Tencent down in one fell swoop.
[Hat-tip to Asia-based startup luminary Benjamin Joffe - and judge at our Startup Arena contests! - for communicating about this in a tweet. He’s @benjaminjoffe on Twitter]
Innovation Works Invests in 2D MMO Game February 13, 2012 | C. Custer
League of Legends makes 20% less in China than the US, all because of a third-pa... May 14, 2014 | C. Custer
LG to Demo First 3D Game Conversion Engine for Smartphones... August 29, 2011 | Rick Martin
Sina Cup 3 main event day 1: VG, LGD.cn, iG, and DK in upper bracket semi-finals... March 3, 2014 | Xairylle
Free daily Games in Asia newsletter
Make sure you don't miss a story! Get the latest headlines from Games in Asia, delivered fresh to your inbox once a day.
Have tips and news? Email Us
- jp on Undead Slayer Extreme review: it’s a real action RPG on your device
- Louie Gestan Austriaco on Rumor: are these really leaked Dota 2 rosters for VG, iG, and LGD?
- Xiaotuji is China's most expensive eSports player ever on The post-TI4 Chinese Dota 2 shuffle: here are the rosters for iG, VG, Newbee, and LGD—DK looking for new players
- Akiba’s Trip 2 for PS4 gets Traditional Chinese version next month on Tales of Xillia 2 review: two years old and still awesome
- I-league LAN finals won't clash with WEC, Newbee might replace DK on China’s new World E-Sport Championships will feature a massive $800k prize pool
- Fortumo on how to monetize in emerging markets like India on Cherry Mobile Pinoy Appshop, home of 100 percent Pinoy-made games
- Fortumo on how to monetize in emerging markets like India on Mobile game revenue in Asia is almost two and a half times of that of America (INFOGRAPHIC)
- Fggii on The post-TI4 Chinese Dota 2 shuffle: here are the rosters for iG, VG, Newbee, and LGD—DK looking for new players
- Manong Bangi L on Would you like a Techies arcana cosmetic, announcer pack, and HUD skin?
- 4 ways China’s Netease Allstars MOBA wants to break traditions on Strife has a plan to beat LoL and Dota 2—and it might just work