Tencent Eyes Deal To Sell Meta's Quest 2 VR Headset in China, The Biggest Videogaming Market - Meta Platf

Tencent Holdings Ltd (OTC:TCEHY) proposed becoming Meta Platforms Inc's (NASDAQ:META) exclusive seller of the latter's popular virtual-reality Quest 2 headsets in China.
Tencent also sought to publish Chinese versions of existing videogames for the device, the Wall Street Journal reports.
The companies must address user data handling, appropriateness of global macroeconomic conditions, and compliance with regulatory norms for both countries, including China's videogame regulations.
China's consumers can buy Meta's headsets from parallel importers on e-commerce platforms like Alibaba Group Holding Ltd's (NYSE:BABA) Taobao and JD.com Inc (NASDAQ:JD).
Users can set up headsets and download apps with a virtual private network to bypass China's internet firewall.
The deal could mark a significant step for Meta to connect with Chinese consumers again after Beijing blocked Facebook in China in 2009.
Meta runs an office in Shanghai and is actively hiring engineers for its VR business.
Meta is the dominant player globally in VR headsets, while its smaller rival, Pico, owned by ByteDance Ltd, has tried to catch on.
Meta's revenue from its Reality Labs division, which houses its VR business, declined 17% in the fourth quarter year-on-year due to lower sales of the Quest 2 headset. The partnership could significantly boost Meta by providing it access to the biggest videogame market.
For Tencent, the deal could help it create new sources of revenue beyond the slowing video game and advertising businesses.
Price Action: META shares traded higher by 0.21% at $173.25 on the last check Tuesday.

METAMeta Platforms Inc

$610.05-0.68%

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TCEHYTENCENT HLDGS UNSP/ADR by Tencent Holding Ltd.

$58.69-%

BABAAlibaba Group Holding Ltd

$132.40-0.14%

JDJD.com Inc

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