Chinese technology conglomerate Tencent Holdings ADR (OTCMKTS:TCEHY) has been in focus this month among investors, and that has led to a healthy gain in its stock as well.
TCEHY has managed to deliver gains of as much as 20% so far this month, and so its worth a look at the company’s latest activities.
Earlier this week, it emerged that Tencent Holdings ADR (OTCMKTS:TCEHY) has gone into the booming esports space through an investment in Versus Programming Network (VSPN). The company describes itself as an esports ‘total solutions provider’.
According to the announcement made by VSPN, the company successfully raised just short of $100 million in the form of Series B funding. The funding round in question was led by Tencent. Some of the other participants in the funding round included Kuaishou and Tiantu Capital among others.
The fresh capital is going to be deployed towards strengthening the esports ecosystem as well as the product offerings in the fast-growing markets in Asia and China. VSPN is based out of Shanghai and was established back in 2016. It is regarded as one of the leaders in esports and content creation in Asia.
The Chief Executive Officer of the company Dino Ying stated that recent policy decisions in favor of esports made VSPN an attractive investment proposition. He went on to state that with this funding, the company is aiming to build an esports focussed research institute and an esports themed culture park.
Additionally, the company also aims to expand its presence at a global level and that is expected to be watched closely by industry experts. Earlier this year in March, the Chief Operating Officer of Tencent, Mark Ren, that the company was looking to fund esports competitions in partnership with companies like VSPN. That was the earliest indication of Tencent’s potential interest in VSPN.