Tencent Holdings, an internet giant from China, announced its restructuring plans on last Sunday. The company is undergoing the restructuring after six years because of the rising challenges owing to tightened regulations by the government. The company has also witnessed a downfall in its market valuation. In addition, it is also facing severe criticism from the investors as well as the analysts who seem to be losing confidence because of the roadblocks aroused out of the tighter regulations by the government, rising debt of the company, and the fuzzy strategies which are deployed overseas. The social media and gaming company which is based in Shenzhen said in a report that it plans to merge three of its businesses into a single unit.
It will be creating a separate business unit for its smart and cloud business. The move by the company is considered to be an attempt to improve the data offering in cloud based services for its corporate clients along with boosting the capabilities of content offering for its various applications like WeChat, games, and music. Alibaba group is a significant rival of the company in the Chinese market. The company will focus upon exploring various alternatives in technology and content which would be more feasible in the trends of the future. The company will also be establishing a separate committee for strengthening its R & D and for promoting the innovations.
Since its establishment in the year 1998, the company has witnessed consistent growth in its business after issuing of IPO till the current year. In the month of January, shares of the company had surged over 88 times the value of it during the IPO thus hitting the value of $578Bn. The most money making business of Tencent is gaming and its most favored game till date is the PUBG Mobile.
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