Packy, great write-up. You might want to include Prosus in your analysis as another way to buy Tencent at discount. You get their businesses for free with Tencent stake.
Worthwhile read, and really great work breaking down such a complexity to a business we can begin to understand. 🙂 Plus have gotten lots of pointers for my startup.
Some interesting other tidbits I heard during my time in China.
1. The initial code for their IM copy of ICQ actually contained code from ICQ that was obviously copied.
2. Heard from a friend who worked at Napster that their investment was their “last”investment in China done as they were walking out the door following a few hundred failed investments.
3. Up until round 2010 MaHuateng used to review most launches before they went out the door to make sure they were good for the user.
4. They used to spike revenue numbers for different regions by doing things such as, for a virtual pets product they had, sending a “flu” to all the pets in a region that was missing it numbers that could be only cured by ‘spending” a few rub on a medicine for the pet.
Honestly the most amazing company I’ve seen and am still upset I didn;t keep my ten thousand dollar investment in them in 2006.
I've been following Tencent for a few years now and I find it crazy that its not much more widely discussed! This is a very well written break down for many who have little to no knowledge of their success and influence. Good work.
This is a wonderful post - thank you. When looking through your excel file listing out the ownership amounts, many vary from what I have. For instance, you have DOYU at 25%, but it is 38%.
Thank you for a very helpful post. What is the source for your claim "WeChat users in China spend an average of four hours per day in the app"? Thanks!
FANTASTIC work Packy. I've been subscribed for about 6 weeks now and rarely read the entire piece... but this was just too good.
Keep up the great work.
www.adamtank.com
Thanks, Adam! I really appreciate that.
I love that post! Great work!
thank you, Pierre!
Packy, great write-up. You might want to include Prosus in your analysis as another way to buy Tencent at discount. You get their businesses for free with Tencent stake.
Free businesses on top of free businesses. I like it.
Excellent analysis 👏
Worthwhile read, and really great work breaking down such a complexity to a business we can begin to understand. 🙂 Plus have gotten lots of pointers for my startup.
Wow...just wow! Very expository and helpful. Found it on Twitter, now I'm subscribed here too. Keep up your amazing work Packy!
Great read! Thank you.
Some interesting other tidbits I heard during my time in China.
1. The initial code for their IM copy of ICQ actually contained code from ICQ that was obviously copied.
2. Heard from a friend who worked at Napster that their investment was their “last”investment in China done as they were walking out the door following a few hundred failed investments.
3. Up until round 2010 MaHuateng used to review most launches before they went out the door to make sure they were good for the user.
4. They used to spike revenue numbers for different regions by doing things such as, for a virtual pets product they had, sending a “flu” to all the pets in a region that was missing it numbers that could be only cured by ‘spending” a few rub on a medicine for the pet.
Honestly the most amazing company I’ve seen and am still upset I didn;t keep my ten thousand dollar investment in them in 2006.
I've been following Tencent for a few years now and I find it crazy that its not much more widely discussed! This is a very well written break down for many who have little to no knowledge of their success and influence. Good work.
Wonderful post!!
Much appreciated, Forrest!
A brilliant piece of reporting on a company that is absolutely difficult to grasp...congratulations and well done Sir!
Brilliant Post Packy. Just a minor correction: The education startup is Byju's and not bydu. btw its the most valuable edtech startup in the world.
🙈 haha have it in the sheet the right way, but got turned around between Baidu and Bydu in here - will fix!
This is a wonderful post - thank you. When looking through your excel file listing out the ownership amounts, many vary from what I have. For instance, you have DOYU at 25%, but it is 38%.
http://ir.huya.com/2020-08-10-Huya-Announces-Receipt-of-Preliminary-Non-Binding-Proposal-from-Tencent
Multiple instances of this: SNAP, SEA, PDD to name a few.
Thanks for the heads up! Would love to get those updated, would you be able to email or DM me the %'s you have for those?
Thank you for a very helpful post. What is the source for your claim "WeChat users in China spend an average of four hours per day in the app"? Thanks!
What a good article!
Packy - amazing work once again! I adore reading your research papers/blogs!
Just a small typo/error you have in the Tencent Portfolio document, I guess an additional zero ended up in the JD.com market cap valuation. :)
All in all, an amazing feeling I can help a bit in the Great Online Game of yours!