Tencent Traveler

Tencent Holdings Limited
腾讯控股有限公司
Public
Traded as
Industry Media, Internet
Founded 1998
Headquarters Shenzhen, Guangdong, China
Area served China
Key people Ma Huateng, Chairman
Products Social networks, mass media, web portals, e-commerce, web browser, Antivirus softwareand multiplayer online games
Services Online services
Revenue Increase CN¥ 43.9 billion (2012)[1]
Operating income Increase CN¥ 15.1 billion (2012)[1]
Net income Increase CN¥ 12.8 billion (2012)[1]
Total assets Increase CN¥ 75.3 billion (2012)[1]
Total equity Increase CN¥ 42.1 billion (2012)[1]
Owner(s) Naspers (partial)
Employees 24,160 (May 2013)[2]
Website tencent.com

Tencent Holdings Limited (Chinese: 腾讯控股有限公司,) is a Chinese investment holding company whose subsidiaries provide mass media, entertainment, Internet and mobile phone value-added services, and operate online advertising services in China.[3] Its headquarters are in Nanshan District, Shenzhen.

Tencent's diverse services include social networks, web portals, e-commerce, and multiplayer online games.[4] Its offerings include the well-known instant messenger Tencent QQ[5][6] and one of the largest web portals in China, QQ.com.[7] Mobile chat service WeChat has helped bolster Tencent's continued expansion into smartphone services.

It is the third-largest Internet company in the world behind Google and Amazon, as at November 2010, when it was valued at US$38 billion.[8] In September 2013, Tencent's market valuation rose to US$101 billion, just nine years after going public.[9][10]

History

Tencent was founded by Ma Huateng and Zhang Zhidong in November 1998[11] as Tencent Inc.[12] Incorporated in Cayman Islands,[13] initial funding was provided to it by venture capitalists.[3] The company remained unprofitable for the first three years.[11]

South African Naspers purchased a 46% share of Tencent in 2001. (As of 2010, it owns 35%.[14]) During these early years Tencent's iconic messenger product had its name changed from OICQ to QQ; this was said to be due to a (apocryphal) lawsuit from ICQ itself.[11] Others say American Internet company AOL, not ICQ, requested the name change.[15] Tencent Holding Ltd was listed on the Hong Kong Stock Exchange on 16 June 2004,[12] and it was added as a Hang Seng Index Constituent Stock in 2008.[16]

The company originally derived income solely from advertising and premium users of QQ, who pay monthly fees to receive added extras.[11] But by 2005, charging for use of QQ mobile, its cellular value-added service, and licensing its iconic penguin character, which can be found on snack food[17] and clothing,[11] had also become income generators.[11] And c. 2008 Tencent was seeing profit growth from the sale of virtual goods.[18]

While Tencent's services have included online gaming since 2004, around 2007-2008 it rapidly increased its offerings by licensing South Korean games.[19] At least two, CrossFire and Dungeon and Fighter, were originally produced by South Korean game developers, but Tencent now makes its own games.[19]

Virtual goods

Tencent sells virtual goods[20] for use in their MMOs,[21] IM client, social networking sites,[22] and for mobile phones.[23] Income from the sale of virtual goods was a large proportion of Tencent's revenue in 2009.[7] The sort of games Tencent made as of 2010 were on track to remain popular and spin profits until 2012, at least.[24]

Tencent's online currency, Q Coins, can be used to purchase virtual goods.[25] These range from the offbeat, such as virtual pets[26] and the virtual clothing, jewelry, and cosmetics needed to customize online-game avatars,[27] to the more mundane, such as more storage space, wallpapers, bigger photo albums,[22] and ring tones.[23]

Locations

Tencent's headquarters are located at the Tencent Building (腾讯大厦 téngxùndàshà) in the Southern Hi-Tech Park District (新科技园 xīnkējìyuán) in Nanshan District, Shenzhen.[28][29] Other sites include a 48,000 square meter compound that houses an R&D center in the Chengdu Hi-Tech Industrial Development Zone,[30] a data and R&D center in Tianjin's Binhai Service Outsourcing Industry Park that is expected to be finished by June 2013,[31] and also some 17,646 square meters of Shanghai office space purchased through a subsidiary, Tencent Cyber (Tianjin), and located in the Shanghai Modern Technology Services Community Zone.[32]

The above list of locations is not exhaustive.

Products and services

Tencent offers a diverse mix of services and counts both consumers and businesses as customers.

QQ instant messenger

Main article: Tencent QQ

Launched in February 1999,[28] and Tencent's most notable product,[5][6] QQ is one of the most popular instant messaging platforms in its home market.[25][33] As of December 31, 2010, there were 647.6 million active Tencent QQ IM user accounts,[1] making Tencent QQ the world's largest online community at the time. The number of QQ accounts simultaneously online has sometimes exceeded 100 million.[34]

While the IM service is free, as of 2006 a fee was being charged for mobile messaging.[35]

QQ International

An English version of QQ that allows communication with mainland accounts, QQi is available for Window and Mac OSX.[36]

iTQQ

China's first "smart interactive television service" and a joint effort with TCL.[25]

Multiplayer online games

Tencent offers a number of online, multiplayer games through its game portal QQ Games.

These massively multiplayer online games include Dungeon & Fighter, a side-scrolling online fighting game; QQ Fantasy, a 2D online game that incorporates elements from Chinese mythology; Xunxian, a 3D, online RPG; QQ Three Kingdoms, an online casual role playing game set during the historical three kingdoms period; QQ Huaxia, an online RPG; QQ Dancer, an online musical dancing game that offers QQ IM interactivity; QQ Nanaimo, an online game set on a desert island where players maintain houses and pets; QQ Speed, a casual online racing game; QQ R2Beat, an online in-line skating game; QQ Tang, an "advanced casual game" with gameplay derived from Chinese literature; QQ PET, a QQ IM-based desktop virtual pet game and two online first-person shooters; CrossFire and AVA.[37]

PaiPai.com

Launched on March 13, 2006,[38] it is a C2C auction site.[25]

QQLive

Main article: QQLive

A peer-to-peer distribution platform for streaming media.[39]

QQ Show

An avatar-based social platform like Cyworld,[7] QQ Show allows purchase of virtual goods to outfit avatars, which can also be used with QQ IM.[40]

QQ Player

In 2008, Tencent released a media player, available for free download, under the name QQ Player.[41]

Qzone

Main article: Qzone

A social networking service[6] and, as of 2008, the largest in China.[13]

SOSO

Main article: Soso.com

Launched in March 2006,[42] this search engine's name sounds like "搜搜", or "search search" in Chinese.[43] It was a Chinese partner of Google, using AdWords.[8]

Tencent Traveler

Abbreviated "TT" (TencentTraveler), this web browser developed by Tencent[44] is based on the Trident[45] and was the third most-used browser in China c. 2008.[45]

Tencent Weibo

Main article: Tencent Weibo

A Chinese microblogging service, Tencent Weibo competes with Sina Weibo.

TenPay

An online payment system similar to PayPal,[25] it supports B2B, B2C, and C2C payments.[38] In some Chinese cities individuals can use TenPay for utility payments and to refill their public transport cards.[46] Co-branded credit cards are available, and credit card bills can also be paid using the service.[47] Offline recharging of your TenPay account is possible, as the company sends employees to collect customer money in person.[48]

Tencent is going to be launching a financial products platform on WeChat in parternship with one of China's largest asset management companies ChinaAMC. The platform will leverage the TenPay payment service. [49]

WeChat

Main article: WeChat

WeChat[50] is a social mobile application with voice and text messaging, timeline,[51] and several social features like drift a bottle. It is very popular in China and is likely to expand abroad.[52]

On July 3rd, Tencent plans to launch a new mobile gaming platform that will include the first ever games on WeChat. [53]

Subsidiaries

Tencent has at least four wholly foreign owned enterprises and nearly twenty subsidiaries in all.[13]

Epic Games

Tencent acquired a minority stake in Epic Games, developer of franchises like Gears of War and Infinity Blade in June 2012.[54]

Riot Games

Tencent invested in Riot Games, developer of League of Legends, for approximately $400 million USD in 2011.[55]

Tencent Technology (Shenzhen) Co Ltd

A software development unit that has created, among others, Tencent Traveler and later versions of QQ IM,[56] as well as some mobile software.[57] This subsidiary is located at the Southern District of Hi-Tech Park, Shenzhen.[56] It also holds a number of patents related to instant messaging and massively multiplayer online game gaming.[58]

Copying claims

Many of Tencent's software and services are remarkably similar to those of competitors. The founder and chairman, Huateng "Pony Ma" Ma, famously said, "[To] copy is not evil." A former CEO and President of SINA.com, Wang Zhidong, said, "Pony Ma is a notorious king of copying." Jack Ma of Alibaba Group stated, "the problem in Tencent is no innovation; all things are copies."[59]

As of 2009, the company held 400 patents.[60]

Investments

Tencent recently increased its stake in Kingsoft Network Technology, a subsidiary of Kingsoft Corporation, to 18%. Tencent previously had a 15.68% stake in the company and raised the stake through a USD 46.98 million investment. [61] On September 17, 2013, it was announced that Tencent has invested $448 million for a minority share in Chinese search engine Sogou.com, the subsidiary of Sohu, Inc. [62]

It has been rumored that Tencent might acquire a stake in Ctrip, but according to high level executives at both firms, the rumor is unfounded. [63]

See also

People's Republic of China portal
Companies portal
Internet portal


References

External links

  • Tencent
  • Tencent Holdings Limited

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