Tencent Holdings Ltd TCEHY is planning to launch an esports league for Valorant in China, according to Bloomberg.
This news comes after the Shenzhen, China-based conglomerate got approval from the Chinese government to launch the free-to-play first-person shooter developed and published by Riot Games back in December.
Moreover, the Tencent subsidiary TJ Sports has recently held discussions with top Chinese esports players about setting up the competition, which could start over the summer, an anonymous source told Bloomberg.
See Also: Chinese State Media Warns Against Frenzy As ChatGPT's Popularity Boosts Local AI Stocks
TJ Sports also operates the League of Legends Pro League in China, the world’s largest esports league in terms of partnered teams and viewership.
Lastly, with the goal of transforming professional gaming from a niche into a key aspect of its growth strategy, Tencent has invested billions of dollars in talent agencies, streaming sites, and tournament organizers.
As of Feb. 9, Tencent's market capitalization was approximately HKD 8.13 trillion (US$1.05 trillion).
Is The Gaming Crisis In China Finally Over?
For context, it’s worth noting that the Chinese gaming industry has been facing a crackdown since 2018 when the government aimed to address concerns over gaming addiction among youth and potential harm to physical and mental health.
The measures included restrictions on game approvals, curbs on online gaming time, and increased censorship. As a result, the gaming industry in China experienced a slowdown.
The COVID-19 pandemic added further challenges to the industry, with restrictions on public gatherings leading to canceled esports tournaments and a decrease in overall gaming activity.
However, as the pandemic situation improved, the gaming industry has started to recover, and Tencent's plans to launch a Valorant esports league in China are seen as a strong sign of the industry's revival.
See Also: China's Video Game Market Experiences First Slump In 18 Years With 10.3% Decrease
Price Action: Tencent Holdings ADR is currently trading at $50.02, up 3.77% over the past 24 hours.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
