Tencent Launching $759M Fund For Online Games, Internet Firms

Chinese internet services and MMO company Tencent Holdings has started a 5 billion yuan ($759.5 million) fund for online and social games, mobile titles, e-commerce, and other new media investments. Along with developing and hosting MMOs like Dungeon & Fighter and World of Fantasy, Tencent operates popular instant messaging client QQ, web portal QQ.com, and a number of other local online services. Much of the firm's revenues come from virtual goods sales across its various properties. It is the largest internet company in China and the third biggest in the world, right behind Google and Amazon, with a market capitalization of $45 billion. The company is reportedly seeking "new sources of revenue growth as growth in the online game market slows", according to the Wall Street Journal. Tencent is the sole investor in the fund, which it will use to collaborate with and help support partners, offering more products developed by external studios. The Shenzhen-headquartered firm believes that this new fund will speed up the introduction of these third-party programs. "It's difficult for any single company to develop all the applications and services," said Tencent Chairman Ma Huateng in a statement translated by financial news site Bloomberg. He added that collaboration with partners is an "important strategy" for the company. Tencent's shares surged 4.7 percent to HK$199.10 ($25.55) in Hong Kong trading today, its biggest gain in two months, after the investment fund's announcement.