Tencent is seeing its first shake-up in six years
Chinese tech giant Tencent (TCEHY) has had a tough year. The company saw a rare decline in its profit in the second quarter as Chinese regulators delayed new game releases in China, Tencent’s biggest market. Tencent is the biggest gaming company in the world.
According to a report by Reuters, the Internet giant is reorganizing its business by shifting its focus to enterprise. This structural change comes as the company seeks to grow its revenue beyond the consumer segment. Tencent has found a lot of success in the space through its messaging app, WeChat, which boasts 1.2 billion monthly active users, placing it above Instagram.
Tencent will now be focusing on industrial Internet
Tencent will unite three of its current divisions—social networks, mobile Internet, and online media—under its platform and content group.
The company will also be adding a cloud and smart industries group, which is made up of its cloud services, location-based services, healthcare, education, and security businesses. This new division will be Tencent’s new stream of revenue.
The company will also sharpen its focus on new technology with its new technology committee, which will emphasize cutting-edge technologies such as AI and quantum research.
Tencent stock has fallen 33% since January, when it hit its all-time high.