Today, 09:51 AM
Background
From video games to instant messaging, Tencent is a Chinese tech firm that has infiltrated nearly every facet of the social media and entertainment industries—and more.
With its origins in the early days of the internet nearly three decades ago, Tencent is responsible for some of the most ubiquitous technologies in China, such as WeChat, the country’s most popular messaging and payment app, and WeBank, the first digital bank in China. It holds major investments in some of the globe’s most industry-disruptive companies (including Tesla and Snap) and is the world’s second-largest video game company by revenue as of this writing.
Tencent was worth more than $500B as of March 2025. In terms of market capitalization, it’s not only China’s biggest company, but also one of the 20 largest companies in the world.
History
When Pony Ma, Zeng Liqing, Chen Yidan, Xu Chenye, and Zhang Zhidong founded Tencent in November 1998, China’s internet sector was growing rapidly. The founders set out to create a Chinese-based messaging platform, capitalizing on China’s growing internet usage.
Tencent’s first big product launch, the OICQ messaging platform (see background), soon gained popularity with strong user engagement. But Tencent didn’t turn a profit until the turn of the century, around the time OICQ was renamed QQ.
To help generate income in the early aughts, QQ licensed its brand mascot, the QQ Penguin, so brands could use it on products like food packaging and clothing. Today, the penguin symbol is as ubiquitous in China as the McDonald’s “Golden Arches” are in the US.
QQ, the mobile instant messaging and social platform, paved the way for Tencent to launch WeChat. Both are still in operation today, though WeChat (Weixin in mainland China) is more popular, with more than a billion (primarily Chinese) monthly active users compared to QQ’s roughly 500 million (read about the relationship between QQ and WeChat).
Tencent went public in 2004 with an initial public offering priced at 47 cents per share. As of April 2025, that number was closer to $65 per share.
Sectors
Headquartered in China’s Shenzhen tech hub, Tencent currently generates revenue through services like WeChat, WeBank, and Tencent Games. Each of these services (and their associated sectors) made up roughly a third of Tencent’s 2024 annual revenue.
Founded in 2003, Tencent Games’ publishing arm started with the classic game QQ Tang. Tencent now not only owns 100% of Riot Games (the company behind League of Legends) and 40% of Epic Games (Fortnite) but also produces its own gaming products. Some of Tencent’s games function within WeChat, while others can be played on Xbox, PlayStation, and other consoles and devices. With more than 600 investments in its gaming portfolio (see the list) Tencent has an outsized influence on the industry at large.
In 2011, Tencent rolled out WeChat, which is now the world’s second-largest messaging app. WeChat is also widely considered a “superapp,” with an ecosystem that allows users to read the news, order food, pay bills, and more. Critics argue that WeChat has become a powerful data collection mechanism for the Chinese government in recent years—experts allege the app both allows surveillance of Chinese and foreign users, facilitating a widespread censorship and propaganda tool for the government.
WeChat’s success solidified Tencent as a household name, giving it the money and power to enter other sectors including banking (WeBank, 2014), entertainment (Tencent Pictures, 2015), and music (Tencent Music Entertainment, 2016). For example, WeBank, China’s first online bank, got its start by leveraging WeChat's massive user base and data to assess the creditworthiness of potential customers.
Future
Tencent’s newest technological advancements include a palm scanning service called “Weixin Palm Payment,” which would enable users to pay for groceries and enter Beijing's airport express train by hovering a hand over a sensor.
In the US, a looming TikTok ban has fueled speculation that the Chinese company could be next—Tencent’s critics argue that its ties to the Chinese military make it a liability to the US government. The company has also been linked to security breaches, triggering concerns about its handling of sensitive data.
From video games to instant messaging, Tencent is a Chinese tech firm that has infiltrated nearly every facet of the social media and entertainment industries—and more.
With its origins in the early days of the internet nearly three decades ago, Tencent is responsible for some of the most ubiquitous technologies in China, such as WeChat, the country’s most popular messaging and payment app, and WeBank, the first digital bank in China. It holds major investments in some of the globe’s most industry-disruptive companies (including Tesla and Snap) and is the world’s second-largest video game company by revenue as of this writing.
Tencent was worth more than $500B as of March 2025. In terms of market capitalization, it’s not only China’s biggest company, but also one of the 20 largest companies in the world.
History
When Pony Ma, Zeng Liqing, Chen Yidan, Xu Chenye, and Zhang Zhidong founded Tencent in November 1998, China’s internet sector was growing rapidly. The founders set out to create a Chinese-based messaging platform, capitalizing on China’s growing internet usage.
Tencent’s first big product launch, the OICQ messaging platform (see background), soon gained popularity with strong user engagement. But Tencent didn’t turn a profit until the turn of the century, around the time OICQ was renamed QQ.
To help generate income in the early aughts, QQ licensed its brand mascot, the QQ Penguin, so brands could use it on products like food packaging and clothing. Today, the penguin symbol is as ubiquitous in China as the McDonald’s “Golden Arches” are in the US.
QQ, the mobile instant messaging and social platform, paved the way for Tencent to launch WeChat. Both are still in operation today, though WeChat (Weixin in mainland China) is more popular, with more than a billion (primarily Chinese) monthly active users compared to QQ’s roughly 500 million (read about the relationship between QQ and WeChat).
Tencent went public in 2004 with an initial public offering priced at 47 cents per share. As of April 2025, that number was closer to $65 per share.
Sectors
Headquartered in China’s Shenzhen tech hub, Tencent currently generates revenue through services like WeChat, WeBank, and Tencent Games. Each of these services (and their associated sectors) made up roughly a third of Tencent’s 2024 annual revenue.
Founded in 2003, Tencent Games’ publishing arm started with the classic game QQ Tang. Tencent now not only owns 100% of Riot Games (the company behind League of Legends) and 40% of Epic Games (Fortnite) but also produces its own gaming products. Some of Tencent’s games function within WeChat, while others can be played on Xbox, PlayStation, and other consoles and devices. With more than 600 investments in its gaming portfolio (see the list) Tencent has an outsized influence on the industry at large.
In 2011, Tencent rolled out WeChat, which is now the world’s second-largest messaging app. WeChat is also widely considered a “superapp,” with an ecosystem that allows users to read the news, order food, pay bills, and more. Critics argue that WeChat has become a powerful data collection mechanism for the Chinese government in recent years—experts allege the app both allows surveillance of Chinese and foreign users, facilitating a widespread censorship and propaganda tool for the government.
WeChat’s success solidified Tencent as a household name, giving it the money and power to enter other sectors including banking (WeBank, 2014), entertainment (Tencent Pictures, 2015), and music (Tencent Music Entertainment, 2016). For example, WeBank, China’s first online bank, got its start by leveraging WeChat's massive user base and data to assess the creditworthiness of potential customers.
Future
Tencent’s newest technological advancements include a palm scanning service called “Weixin Palm Payment,” which would enable users to pay for groceries and enter Beijing's airport express train by hovering a hand over a sensor.
In the US, a looming TikTok ban has fueled speculation that the Chinese company could be next—Tencent’s critics argue that its ties to the Chinese military make it a liability to the US government. The company has also been linked to security breaches, triggering concerns about its handling of sensitive data.
