‘Tencent’ will soon live up to their name if this keeps up
Tencent is deciding to fold… on its popular online poker game “Texas Everyday Hold’em” which had over 1 billion users. The loss looks to be yet another setback for a company whose stock is down 35% since the start of 2018. Now, 35% is a lot for any company, but to Tencent that represents $200 billion in market value – that’s a lot a lot (sorry for the really technical term there).
The significant loss in market value… comes from strict regulations imposed by the Chinese government. Gambling (and all fun?) is illegal in China, but the gaming company got around that by having users play with virtual tokens. That was all well and good until users started trading tokens for cash which caused the Chinese government to take a closer look at the gaming company.
Other problems for Tencent include… not being able to make money – there you go, that is an all-encompassing reason. Tencent needs the approval to make money on their new mobile games, such as the popular “PlayersUnknown’s Battlegrounds.” There is also talk about Beijing limiting online gaming and restricting the amount of time kids can play on their devices. Sounds like a fun time to do business in China, no?