Alibaba Steps Into Tencent’s Turf, Buys Stake In ChinaVision
Tecent has been moving quick lately, opening new banks, coming up with new acquisitions, and new technology releases. Some say that Tencent will eventually dominate the tech and startup world in China, but Alibaba says, “Not so quick! We’re still here!”. Alibaba takes a big leap and purchases their way into becoming a major shareholder of ChinaVision, a large Chinese media company.
ChinaVision is a huge media company based in Hong Kong and China. Their main revenue comes from Chinese films and print media. Some of their hit films include Kung Fu Hustle and Let The Bullets Fly. Tencent is already a stakeholder in ChinaVision, but Alibaba wants a piece of the pie as well.
The reason why ChinaVision is seeking outside investment is because it needs capital to produce more films and applications. The market and economy is growing like crazy in China. Earlier, all the startups were talking about how China’s ecommerce is growing rapidly, now media companies are growing rapidly as well. Every single one of the tech giants in China want a piece of the media game. Not long ago baidu acquired PPS and iQiyi, banning a lot of foreign countries from viewing them as well.
The thing to note about China is that there is content everywhere. Meaning, you could easily search up a bootleg version of tudou or any other type of video streaming service. Most media related material is free in China, and implementing a monetization model would be extremely difficult for businesses in China.
Battle of The Tech’s in China
It’s a doggy dog world in China. All the tech companies in China are battling it out with each other to see who can become the next world giant. The main companies in the battle right now is Baidu, Tencent, and Alibaba. All three of them respectively are moving out of their comfort zone and slowly proceeding into a new field. It’s a rat’s race to see who can pick up the piece of cheese before the other team does. All three companies have massive goals to expand outside of China. For example Tencent owns Riot, home of one of the most popular online strategy game based in America. The China tech giants are moving quick!