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The Tencent push into the metaverse and VR/AR world with the proposed acquisition of Black Shark is not an uncommon event in the tech world today.
Chinese multinational entertainment conglomerate, holding company, and the largest gaming company in the world, Tencent Holdings Ltd (HKG: 0700) is reportedly on track to acquire Black Shark, a gaming smartphone startup that is backed by mobile phone maker, Xiaomi Corp (HKG: 1810).
While Tencent has not officially confirmed the news, several media platforms are reporting the deal with no defined monetary terms quoted. According to GizmoChina, Tencent’s proposed acquisition of Black Shark will be added to the tech giant’s Content Business Group, as the firm looks to clear its path for its entry into the metaverse.
Black Shark was founded in 2017 and it manufactures high-tech gaming smartphones and accessories. Its position in today’s gaming world is further solidified with its goal to make game enthusiasts experience a real adventure for all. Black Shark is committed to developing a 360-degree gaming eco-system based on hardware, software, and service. It hopes to do this riding on the power of its cutting-edge innovation, refined build and design, polished software, and gamer-centric service.
Black Shark is currently owned by Xiaomi Corp which holds a 46.4 percent stake in the company. While the report did not say how much of Xiaomi’s or other shareholders stake Tencent will acquire, the potential acquisition of Black Shark will see the startup undergo a business transformation when the deal is complete.
Per the reports, a part of the transformation process will be the diversification of Black Shark into Virtual Reality (VR) or Augmented Reality (AR) outfits. Notably, Black Shark will provide the hardware for the AR/VR products while Tencent will supply the necessary softwares. Since there is a very close link between VR and metaverse-related push, the Black Shark deal, if it pulls through, will be a great one for Tencent as the company has been filing trademarks to wade into the burgeoning ecosystem in recent times.
Per GizmoChina’s report, Black Shark’s functional R&D department and manufacturing capabilities also make the outfit a good buy for the tech giant.
Tencent and Black Shark Models Meta and Oculus Acquisition
The Tencent push into the metaverse and VR/AR world with the proposed acquisition of Black Shark is not an uncommon event in the tech world. Meta Platforms Inc (NASDAQ: FB), formerly Facebook Inc also announced its acquisition of Oculus, a VR headset manufacturer and digital entertainment firm back in 2014.
While time has elapsed from then till now, Meta is driving a metaverse-driven future, a plan it has floated a $50 million fund to develop as reported earlier by Coinspeaker. With metaverse being the new sensation in the broader social media and digital entertainment world, the potential success of Tencent’s acquisition of Black Shark will mark a grand entry into the metaverse world for the Shenzhen-based corporation.