Tencent Holdings, one of the world’s largest gaming companies, may be getting an interesting investment. It is reported that the Chinese government wants to become a partner by purchasing a certain part of the Tencent company. This investment could lead to Tencent-owned games like PUBG Mobile and Call of Duty: Mobile being banned in Western countries.
Chinese government to become a partner in Tencent Holdings
It has been claimed that the Chinese government will buy a stake in Tencent, one of the country’s largest technology firms. It was reported that the Asian country wanted to have a say in the board of directors by buying a “golden share” from the company.
According to the news in the Financial Times, these shares will give the country’s regulator the ability to vote on important business decisions. Even though gold stocks make up only one percent of a company, being “gold” will allow the Chinese government to have a say in many issues.
This move by the Chinese government is seen as part of efforts to increase oversight of tech giants operating within the country. The purchase of Tencent gold shares is thought to affect its partners and the games it holds.
It is thought that the involvement of the Chinese government in Tencent will not be welcome in Western countries. Therefore, Tencent, the distributor of popular games such as PUBG Mobile and Call of Duty: Mobile, may have to transfer these productions to a different company.
1924
