One of China’s biggest tech companies, Tencent Holdings (OTCMKTS:TCEHY), just made some pivotal moves that should bring familiar titles to its platforms. While this should be good news overall, the market was less sure, sending Tencent down slightly in Wednesday afternoon’s trading.
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While the Chinese shutdown over COVID-19 left many tech companies on the back foot, Tencent seems to be making a comeback. It landed a set of new licenses for some major new video game properties. One of the biggest landings was Nintendo (OTCMKTS:NTDOY) and its Pokemon property. Tencent will now be able to release “Pokemon Unite,” a multiplayer online battle arena (MOBA) title that lets a set of Pokemon battle another. Other titles included “Valorant,” “Don’t Starve,” and a pair of other titles.
It isn’t just licensed titles from foreign producers that made the cut, though, as 84 domestic titles got the nod for publication as well. This flurry of new licenses actually represents the first such licenses issued in a year and a half. Overall, licenses have been down this year, as only 462 were issued this year compared to 755 last year.
This is an explosive gain, but one field that remains largely unconvinced is hedge funds. Hedge funds all but abandoned Tencent Holdings entirely, selling 42.3 million shares in the last quarter. This was sufficient to shift hedge fund opinion on Tencent to “very negative.”
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