Tencent has strategically invested nearly 500 million yuan in Palm Technology, aiming to integrate and layout the e-sports mobile game ecosystem.

Tencent's strategic investment in palm fun technology is its first investment in an A-share mobile game company. From the content production of mobile games to the promotion and distribution of e-sports 's live broadcast platform, Tencent's upstream and downstream layout in this field is ambitious.

on the evening of June 20, palm fun Technology, which has been suspended for five months, issued an announcement that it received a strategic stake of 490 million yuan from Tencent. Linzhi Tencent Technology Co., Ltd., a wholly-owned subsidiary of Shenzhen Tencent Industrial Investment Fund Co., Ltd., will transfer 55.41 million shares from Yao Wenbin, a controlling shareholder of palm fun technology, accounting for 2% of the company's total share capital, with a transaction consideration of about 490 million yuan, according to the announcement.

Palm fun Technology focuses on the field of domestic mobile game production. Since it was listed on the gem in 2012, it has successively acquired mobile pioneer, play crab technology, upstream information and other subdivided game research and development leading enterprises. According to the 2016 Game Industry report, Palm fun Technology ranks third in the list of mobile game research and development, behind Tencent and NetEase.

the reporter noticed that Palm fun Technology has always maintained close cooperation with Tencent. In Tencent mobile game platform, although there are a large number of various types of games, but there has been a lack of heavyweight pure competitive popular sports mobile games. In September 2016, Tencent announced that it was the exclusive agent for the popular "street basketball" mobile game developed by Palm fun Technology, which shows the relationship between the two sides. According to palm technology, products that have cooperated or confirmed cooperation with Tencent include "Miracle of the whole people", "final Battle of Boxing King 98 OL", "Miracle: awakening", "Heroes of Magic: war era", "early Voice Future: dream Song Ji" and other mobile games.

in the field of e-sports live streaming, Tencent and Palake.com also have tacit understanding. In March 2016, in the $100m round B financing completed by Douyu TV, Tencent contributed Rmb400m to lead the investment, while Nanshan Capital also made additional investment. It is worth mentioning that Palm fun Technology is the single largest LP (investor) of Nanshan Capital. Back to the big tree, now, Douyu TV in the game live broadcast field has firmly occupied the leading position.

Tencent's popular phenomenal product "Arena of Valor" has 200m registered users, covering players of various ages, with more than 50 million daily active users and 80 million to 90 million games a day. Tencent made a record net profit of nearly 14.5 billion yuan in the first quarter of this year, of which mobile games made a huge contribution of 12.9 billion yuan. E-sports mobile games have become Tencent's gold-sucking monster.

Palm fun Technology said in an announcement last night that the deep cooperation between R & D advantage companies and leading platform companies has proved to be a win-win model for the combination of strong and powerful companies.

Tencent's strategic investment in palm fun technology is its first investment in an A-share mobile game company, which has a far-reaching impact. From the content production of e-competition mobile games to the promotion and distribution of e-sports live broadcast platform, Tencent is ambitious in the layout of the upstream and downstream of e-competition mobile games.

Edit: jessica