I was quoted in this @SCMPTech article about how Tencent invested in or acquired 31 video game related companies in 2020 and why this is 3x higher than the prior year.

I've put together a thread below with some additional thoughts too. https://www.scmp.com/tech/big-tech/article/3116846/tencent-feels-heat-gaming-rivals-alibaba-bytedance-and-genshin-impact?utm_source=Twitter&utm_medium=share_widget&utm_campaign=3116846

Tencent’s approach to M&A can be characterized as somewhat conservative, investing primarily in firms that have a proven hit.

Tencent historically has invested in roughly a dozen companies each year, and obviously there are many more investment opportunities than that.

As Tencent faces increasing competition in the market, primarily from large tech firms such as Bytedance and Alibaba in addition to mid size firms such as Lilith and MiHoYo, the company appears to be taking a less conservative approach to M&A.

The company has augmented the investment philosophy to add investing in smaller companies than it typically does, and at a much earlier stage. Tencent is also investing in companies with experience in PC and Console games, while offering its experience in mobile games to them.

However, while the article speculates that Tencent missed the boat on some investments, such as MiHoYo, it's worth noting that it has been actively pursuing other companies in this space recently, even if its investment level in ACG is lower than others.

Tencent is in no danger of losing its #1 position in the games market, but it is beginning to feel some pressure as other companies have been able to disrupt its grip on the top ten grossing games chart.

We expect Tencent to continue its aggressive approach to M&A in 2021.