Tencent buys Black Shark to make Metaverse, maybe just playing tickets

Try it out, throw some change, and that’s it.

This article is from the WeChat public account “Lu Jiu Caijing” (ID: liujiucaijing69), author: Guo Defan

Probing, small investment, not losing money, trying more, investing in VR may be a pretense, to put it bluntly, buy back a high-quality hardware asset.

On January 10, news came out that Tencent will buy the game maker Black Shark from Xiaomi, and then go to VR to pave the way for the future metaverse.

Since Tencent is doing VR and has no shortage of money, why should it buy a mobile phone manufacturer that has not yet developed VR products to do this? Facebook directly bought Oculus for $2 billion, and ByteDance bought Pico for $9 billion. The investment logic here is hard to avoid.

But in fact, Tencent’s acquisition also reflects the technology giant’s attitude towards the Metaverse from one side, and it also reflects Tencent’s investment logic in this area today.

Probing, small investment, not losing money, trying more, investing in VR may be a pretense, to put it bluntly, buy back a high-quality hardware asset.

In response to this acquisition, Lu Jiu Finance asked the relevant person in charge of Black Shark for confirmation. The person in charge said that he would not comment on the matter. However, Lu Jiu Finance has confirmed its authenticity through multiple sources.

Several key points of this investment

What price will Tencent pay for this investment in Black Shark? The approximate valuation of Black Shark is 3 billion yuan. The news that Lu Jiu Finance has obtained is: Tencent haggled the price to about 2.7 billion yuan to win. At present, according to the information from Tianyan, the shareholder change has not yet begun.

In this investment, there are several points that we need to pay attention to:

First, Tencent dealt with JD.com, the core asset in Internet investment, some time ago, and then spent a small amount of money to invest in Black Shark. This may be a sign of deviating from reality . After all, Tencent’s own internal incubation hardware has all failed.

Second, although Black Shark does not have much VR technology accumulation now, Black Shark is the largest manufacturer of gaming mobile phones. This means that, to put it bluntly, you can use it immediately after you buy it, andyou can combine Tencent’s game advantages to make profits in the short term ; in addition, Tencent needs hardware user portals, while Baidu has Xiaodu, and Ali has Tmall Genie.

Third,  Tencent will not miss the Metaverse, but it is definitely still running in small steps, taking a wait-and-see attitude, and investing in small-scale trial and error . Tencent currently has a high probability not to think that the metaverse will come quickly, the cycle is still very long, and it is not before the eve of the outbreak.

Fourth, mobile phones will still be the personal computing center in the short term. Even in the metaverse era, mobile phones may still be the source of data displayed by VR. In pursuit of a high probability of success, future content service companies will increasingly need their own hardware ecosystem.

Fifth,  why is it so low-key? The reason may be because it is a tentative investment, or it may be due to the needs of the anti-monopoly environment.

Tencent has always had a hardware dream

In terms of content, Tencent said that it was the second child, but no one dared to say it was the first.

Games other than Tencent Games may only be counted as others; Tencent Video, China Literature Group, Tencent Music, Tencent Games and other high-quality content assets are enough to support Tencent’s content empire.

However, these seem to be virtual souls. Tencent has never had a body, so these data always flow in the veins of others.

In fact, Tencent has always had a hardware dream. The success of Xiaomi has made many Internet companies, including Tencent, jealous. Hardware facilities, as the “entrance” of Internet software, have also become the fat meat that Tencent is closely watching.

This purchase of Black Shark is not the first time Tencent has tried to get its hands on mobile phone hardware. As early as 2010, Tencent Investment participated in the B round of investment in Da Q Mobile, and even acquired it in 2012. But over the years, the big Q mobile phone has almost no sound in the market.

Also in 2012, Tencent teamed up with TCL to launch the world’s first mobile terminal with a mobile smart screen. At that time, Tencent said that it was the first attempt to integrate into home application scenarios, hoping to meet the needs of users to quickly switch between different application scenarios. Since then, Tencent has also prepared to launch WeChat TV with Skyworth and TCL, but the above actions have ended in haste – it can be said that although Tencent has money, people, and brands, Tencent, which has strong content, just doesn’t have the hardware market to stir up the storm.

Whether it was projection, TV, or smart screens, mobile phones, etc., Tencent ended unsuccessfully, but it may not care.After all, in the previous business environment, it was easier to earn money on the Internet, and the sense of crisis was not very strong.

The model of the previous generations of the Internet was very simple. Two families, the hardware maker and the software maker, each had their own meals and basically did not interfere with each other. Apple has also set up a store so far, and everyone made money together; but Facebook is currently open. A new head starts to make hardware by himself, and then needs to fully cut into the content and social ecosystem. In this way, the way of playing is different. Enterprises must not only have a content ecosystem, but also control the hardware.

His own blood still flows in his own body, the most unobstructed.

In the future, Tencent will most likely sell Internet assets with suitable prices one after another, especially stable companies that have reached the ceiling; this part of the money, at present, is likely to be invested in the hard technology industry advocated by the current policy. Hardware is of course the only choice, but investment must also be logical. At least the things you buy must be able to interact with your own business.

Buying a Black Shark to make the Metaverse is basically a long-term idea. After all, Black Shark does not have a mature product for VR, but the concept is enough.

After all, Black Shark is already the market leader of gaming mobile phones, and it is also a high-quality hardware asset if you buy it back. It’s as simple as that, plus your own game content, you don’t need to burn money in the short term, and it’s a good business that makes money right away. .

At least, the Black Shark can handle it.

Tentative, throw a little money

Tencent, in the Metaverse, is talking more and doing less.

After all, he is the overlord, and he firmly controls the gate of traffic. The hunger and thirst must not be compared with the old-fashioned Meta and Byte.

From the perspective of Tencent’s current strategy, it is basically a wait-and-see state. The concept of the metaverse has not yet been fully formed, and the hardware and network foundations are not mature. Now that ALL IN is doing this, the cost of trial and error is too high. According to some information currently held by Lu Jiu Finance and Economics, many business departments of Tencent are currently testing the possibility of the metaverse on a small scale internally, such as experimental projects such as Robles, but there has been no substantial progress.

Metaverse and Web 3.0 may be essentially the difference in names. Tencent is currently able to sense that the change is coming, but the specific form cannot be judged. After all, whether the Metaverse is equal to Web 3.0 is still debated.

Why use the black shark to find the way? Many people are now saying that mobile phones are dead, but it cannot be denied that although the technology is stagnant, mobile phones are still the data processing center of personal information. For now, there is no other device that can replace mobile phones. The risk of investing in mobile phones is lowest. Mobile phones are the entrance, and VR is also the entrance. To be a metaverse, you must have an accessible entrance.

With its own mobile phone manufacturer, Tencent can achieve the dual goals of internal testing and market testing in a short period of time, and can put the test of the next stage of the Internet form on the Black Shark product line little by little.

Moreover, Black Shark also has full experience in chip tuning and mobile phone development. Most of the teams are from Xiaomi, Huawei and other big manufacturers. If you continue to invest in the development of VR hardware for a long time, it will be much cheaper than Tencent to buy a mature company again. .

Previously, in the acquisition competition of Pico, it can be seen that Tencent is not willing to invest too much in hardware, and less than 5 billion yuan may be the largest amount that can be tolerated at present.

There is one point to note in this acquisition. According to media reports, Black Shark is managed by PCG, not IEG. It seems that Tencent’s expectations for Black Shark are not just as simple as games.

Why PCG?

Very simple, IEG is a dairy business, there is no shortage of money, and there is no crisis, but PCG is different. Most of the businesses are non-core businesses, many of which are still losing money and need to be reformed.

In the business of the IEG department, the main revenue is derived from users. Each business has many partners, such as Tencent Games, which has to cooperate with many mobile phone manufacturers. If you put the Black Shark in it, it is obvious that there will be left and right hands. situation; but PCG is basically a business that lives on advertising, a business that makes To B money, and most of it is content, such as Tencent Video. From the perspective of friendliness, such a business is more suitable for Black Shark.

Although it seems a bit strange, it is understandable: a small business with uncertainties cannot impact the current dairy business.

From the perspective of Tencent’s current business structure, if the future Web 3.0 is the state of the Metaverse this year, then Tencent is undoubtedly holding a good hand: social, games, content, all three elements, only one is missing hardware to match.

However, when the PCG department currently has no leading projects to drive, can Black Shark undertake the task of exploring the next generation of Internet hardware? In the last wave of IoT boom, Tencent only invested in some companies and did not end up doing it in person. This time, if it is a full acquisition, at least Tencent has shown greater determination and vision.

Perhaps, this is just one attempt of Tencent’s countless future trials. The Black Shark mobile phone may be little known to the public, but it has a certain strength in the gaming crowd. In short, it will take time to test whether this is a bad move or a good move.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/tencent-buys-black-shark-to-make-metaverse-maybe-just-playing-tickets/
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