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Tencent has its hands that it sometimes competes with itself. Last year, for instance, a competition broke out between the battle royale match PlayerUnknown's Battlegrounds and the match which
would ape its favorite formula, Fortnite. Fortnite went on to develop into the largest game in the world. Outside observers may have observed this as a bitter rivalry, however to a particular Chinese publisher, it didn't matter who won.
See, Tencent possesses 40% of Epic Games, the company behind Fortnite. Tencent also has a minority stake in Bluehole, the developer of PUBG, and is actively buying more. Tencent has the exclusive rights on both matches China, in its home country. Like a bookie carrying a vig on each side of a sports game, Tencent will make money regardless of what happens.
And Tencent is currently earning money -- incomprehensible sums of cash. Last week, the writer reported first-quarter profits of $3.65 billion. For contrast, the mega-publisher Activision Blizzard made $500 million in precisely the same period, while EA reported a profit of $566 million. As a result of its enormous investments in internet services and its complete dominance over matches in China, Tencent is earning over most other game publishers combined.
Obviously, that has not stopped Tencent from snatching up
parts of those publishers. The mega-conglomerate includes a bet in Activision and publishes EA's and both Activision's games in China.Ever play with Clash of all Clans? And what about League of Legends? Riot Games and its own ~2,500 staff are all Tencent employees.
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