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Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app, which has become deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading tech companies, including PDD, Kuaishou, and Epic Games.

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The potential collaboration with Tencent and ByteDance is critical for Apple as it navigates the competitive Chinese market. 

Apple Reportedly In Talks With Tencent, TikTok-Parent ByteDance To Roll Out AI Features In China

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Dental supply maker Patterson Companies Inc announced Thursday that it is exploring strategic options, including a sale or merger, to boost shareholder value.

Deal Dispatch: Ubisoft In Buyout Talks, Dental Supplier Explores Sale, Beloved Drive-Through Goes Bankrupt

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Ubisoft is in talks with Tencent for a possible buyout that could take the company private and reshape its future.

Ubisoft Stock Jumps 14% After Reports Of Tencent Buyout

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Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly engaging in discussions with&nbsp;Tencent&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and TikTok&#8217;s parent company,&nbsp;ByteDance, to integrate their AI&nbsp;models into iPhones sold in&nbsp;China.
What Happened: The U.S. tech giant began incorporating OpenAI&#8217;s ChatGPT into its devices earlier this month. However, due to regulatory constraints in China, Apple is seeking local partners to enhance AI features on its devices. The&nbsp;discussions with Tencent and ByteDance&nbsp;are reportedly in preliminary stages, sources indicated, Reuters reported on Thursday.
Apple&#8217;s move comes&nbsp;as it faces declining market&nbsp;share in China, the world&#8217;s largest smartphone market.&nbsp;The absence of AI capabilities&nbsp;in its latest iPhones has been a significant drawback, especially with increasing competition from domestic brands like Huawei.
Apple, Tencent and ByteDance have yet to respond to <a href="http://pro.benzinga.com">Benzinga&#8217;s</a> queries.
See Also:&nbsp;<a href="https://www.benzinga.com/tech/24/12/42525551/ahead-of-trumps-return-to-white-house-us-approves-406m-grant-for-taiwans-chipmaker-globalwafers?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Ahead Of Trump&#8217;s Return To White House, US Approves $406M Grant For Taiwan&#8217;s Chipmaker GlobalWafers</a>
Why It Matters: The potential collaboration with Tencent and ByteDance is critical for Apple as it navigates the competitive Chinese market. In recent months, Apple has faced challenges in China, including a <a href="https://www.benzinga.com/markets/equities/24/08/40125039/apple-cracks-down-on-tencent-and-bytedance-over-30-app-store-fees-threatens-to-reject-essential-">crackdown on app store fees</a>. In August, Apple intensified efforts to compel Tencent and ByteDance to close loopholes that allowed in-app creators to bypass Apple&#8217;s 30% commission. 
Moreover, Apple&#8217;s AI ambitions have been met with skepticism. In October, an analyst suggested that <a href="https://www.benzinga.com/news/24/10/41420086/apple-intelligences-meh-moment-ahead-analyst-predicts-5-months-of-build-up-could-lead-to-a-thats-it">Apple&#8217;s much-anticipated AI system,</a> Apple Intelligence, might not meet high expectations. This underscores the importance of Apple&#8217;s current talks with Chinese tech giants to bolster its AI capabilities.
In November,&nbsp;Tim Cook&nbsp;expressed optimism about Apple&#8217;s performance in China, <a href="https://www.benzinga.com/news/24/11/41677388/tim-cook-underscores-several-positive-signs-in-apples-china-performance-refrains-from-talking-about">highlighting positive signs</a> despite economic challenges. However, he refrained from commenting on the potential impact of economic stimulus. This context emphasizes the strategic importance of Apple&#8217;s AI integration efforts in maintaining its market position in China.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42499609/micron-gets-investment-from-white-house-china-launches-antitrust-investigation-on-nvidia-apple-faces-1-2-billion-lawsuit-in-california-more-consumer-tech-news-december-9-13?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Micron Gets Investment From White House, China Launches Antitrust Investigation On Nvidia, Apple Faces $1.2 Billion Lawsuit In California &amp; More: Consumer Tech News (December 9-13)</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
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<h2 class="wp-block-heading">New On The Block</h2>
Dental supply maker Patterson Companies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDCO#NASDAQ">PDCO</a>) announced Thursday that it is exploring strategic options, including a sale or merger, to boost shareholder value. The company disclosed the deal process as part of its <a href="https://www.benzinga.com/24/12/42342667/dental-supplies-patterson-companies-evaluates-strategic-alternatives-after-mixed-q2-earnings-amid-challenging-end-market-environment">second-quarter financial report</a>.
<h2 class="wp-block-heading">Updates From The Block</h2>
EasyHotel is close to being sold. A billionaire-backed firm called London &amp; Regional Properties is bidding against a fund managed by Tristan Capital Partners. The auction process is in its final stages, according to <a href="https://www.bloomberg.com/news/articles/2024-11-27/billionaire-brothers-private-equity-chase-deal-for-easyhotel">Bloomberg</a>.
Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) is in talks with Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) <a href="https://www.benzinga.com/general/gaming/24/12/42372040/ubisoft-stock-jumps-14-after-reports-of-tencent-buyout">over a potential buyout</a>. According to Reuters, the deal would allow Ubisoft&#8217;s founders, the Guillemot family, to retain control if the company goes private. This development follows a <a href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft">difficult year for Ubisoft</a>, marked by staff layoffs, disappointing sales, and the closure of several studios. Ubisoft&#8217;s stock jumped 14% after news of the buyout discussions emerged, as per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a>
Lightspeed Commerce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LSPD#NYSE">LSPD</a>) is reorganizing. A majority of the restructuring charges will be incurred in the third quarter of fiscal 2025. The focus remains on &#8220;reducing the complexity of our business,&#8221; said Lightspeed founder and CEO Dax Dasilva <a href="https://investors.lightspeedhq.com/English/newsroom/news-details/2024/Lightspeed-Commerce-Announces-Strategic-Reorganization-Continues-to-Optimize-for-Profitable-Growth/default.aspx">said</a>. An analyst told <a href="https://www.paymentsdive.com/news/lightspeed-strategic-reorganization-employee-impact/734300/">Payments Dive</a> that the intent is to set Lightspeed up for a sale. JPMorgan and RBC are advising the process, according to <a href="https://www.bloomberg.com/news/articles/2024-11-07/lightspeed-looks-for-efficiencies-as-strategic-review-continues">Bloomberg</a>.
See Also: <a href="https://www.benzinga.com/general/space/24/12/42376708/nasa-mission-to-land-humans-on-moon-delayed-artemis-3-now-slated-for-mid-2027">NASA Mission To Land Humans On Moon Delayed &#8211; Artemis 3 Now Slated For&#8230;</a>
<h2 class="wp-block-heading">Off The Block</h2>
Novavax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) agreed to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) <a href="https://www.benzinga.com/pressreleases/24/12/n42308359/novavax-announces-sale-of-czech-republic-manufacturing-site-to-novo-nordisk-for-200-million" target="_blank" rel="noreferrer noopener">for $200 million</a>. The deal includes transferring assets, including a 150,000-square-foot factory <a href="https://www.benzinga.com/24/12/42323263/wegovy-maker-novo-nordisk-to-buy-novavaxs-czech-republic-manufacturing-facility-for-200-million">and the existing workforce</a>.
Schneider National, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNDR#NYSE">SNDR</a>) disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately $390 <a href="https://www.benzinga.com/pressreleases/24/11/b42167845/schneiders-dedicated-momentum-continues-to-build-with-latest-acquisition-of-cowan-systems-llc" target="_blank" rel="noreferrer noopener">million in cash, subject to adjustments</a>. The deal also includes a separate purchase of related real estate <a href="https://www.benzinga.com/news/mid-cap/24/11/42170700/schneider-expands-its-fleet-390-million-cowan-systems-deal-supercharges-dedicated-services">assets for $31 million</a>.
Renewi, a London-listed waste management company, <a href="https://www.macquarie.com/assets/macq/about/company/macquarie-asset-management/project-earth/joint-statement-regarding-a-final-possible-cash-offer-for-renewi-by-macquarie.pdf">agreed</a> to a preliminary takeover offer from Macquarie Asset Management that values it at 700.9 million pounds ($888.8 million). Renewi had been exploring the sale of certain assets (i.e. its <a href="https://www.globenewswire.com/news-release/2024/10/10/2961009/0/en/Completion-of-divestment-of-UK-Municipal-operations.html">UK Municipal division</a>) in order to reduce debt and focus on its core recycling business in the Netherlands, Belgium, France and Portugal.
<h2 class="wp-block-heading">Bankruptcy Block</h2>
Eegee's, a beloved drive-through restaurant chain founded in Tucson in 1971, has filed for Chapter 11 bankruptcy and closed five locations—four in Tucson and one in Phoenix. Despite challenges, Eegee's continues to operate over 20 locations in Tucson and Phoenix. Local media <a href="https://www.kold.com/2024/12/06/eegees-closes-five-restaurants-files-bankruptcy/">reported</a> that the company owes significant debts, including over $1.2 million to Sysco and hundreds of thousands more to other vendors, with total liabilities ranging between $10 million and $50 million. CEO Chris Westcott cited various pressures as reasons for the restructuring, but local residents blamed 39 North Capital, Eegee's owner since 2018.
Trucking company Kal Freight filed for bankruptcy protection, saying its financial condition has been hurt by unprofitable efforts to become a vertically integrated business and a now-questionable investment in additional vehicles during the height of the Covid-19 pandemic. The closely held company also faces litigation, including foreclosure actions, according to the <a href="https://www.wsj.com/articles/trucker-kal-freight-files-for-bankruptcy-protection-06194094">Wall Street Journal</a> citing a filing Thursday in the U.S. Bankruptcy Court in Houston.
Proma Group has <a href="https://www.promagroup.com/archive/news/68">acquired</a> Germany&#8217;s Recaro Automotive GmbH, enabling the company to exit bankruptcy and resume operations across Europe starting January 2025. Recaro's aftermarket seats will return to the market in January, with OEM production shifting to Italy where Proma is based. Several employees from Recaro&#8217;s Sales and Technology departments will remain in the Stuttgart area to ensure a smooth transition and customer support. Recaro&#8217;s operations in North America and Japan remain unaffected. Proma Group CEO Luca Pino praised the partnership as a blend of German industrial and Italian manufacturing excellence.
<h2 class="wp-block-heading">Notes From The Block</h2>
Bain &amp; Company did a swell job putting M&amp;A telecom trends into perspective this week. Here&#8217;s what we learned: 
<ul>
<li>Global deal value &#8220;surged&#8221; from about $24 billion in the first three quarters of 2023 to $90 billion in the same period in 2024, the firm noted. The Americas accounted for 63% of the global total.</li>
<li>Financial investors are acquiring tower and fixed assets. This trend underscores confidence in digital infrastructure's business fundamentals despite headwinds.</li>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40727235/verizon-to-acquire-frontier-in-20b-deal-reaffirms-fy24-outlook">The $20.3 billion deal between</a> Frontier Communications Parent, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) is the year's largest transaction so far.</li>
<li>Scale deals accounted for nearly half of global deal value year to date; infrastructure divestments accounted for 22% of deal value through the first nine months of 2024 (36% of all deal value over the past five years); mobile and fixed divestments made up about 20% during that period. For the full report, <a href="https://www.bain.com/insights/telecom-m-and-a-here-are-the-latest-deal-trends-worldwide-interactive/">click here</a>.</li>
</ul>
For last week&#8217;s <a href="https://www.benzinga.com/news/asset-sales/24/11/42254293/deal-dispatch-stoli-bankrupt-ally-financial-to-sell-credit-card-unit">Deal Dispatch, click here</a>.
Now Read:
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42370712/bitcoins-flash-crash-is-a-classic-bull-market-shakeout-says-trader-watch-these-3-scenarios">Bitcoin Flash Crash: Classic Bull Market Shakeout?</a></li>
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Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) is in talks with Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) over a potential buyout.
According to Reuters, the deal would allow Ubisoft&#8217;s founders, the Guillemot family, to retain control if the company goes private.
This development follows a <a href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft">difficult year for Ubisoft</a>, marked by staff layoffs, disappointing sales, and the closure of several studios. Ubisoft&#8217;s stock jumped 14% after news of the buyout discussions emerged, as per <a href="https://pro.benzinga.com/dashboard">BZPro.</a>
See Also: <a href="https://www.benzinga.com/24/12/42366954/neteases-marvel-rivals-launches-with-444000-players-on-steam">NetEase&#8217;s Marvel Rivals Launches With 444,000 Players On Steam</a>
<h3 class="wp-block-heading">Privatization Could Mean Big Changes For Ubisoft</h3>
Sources have told Reuters that Ubisoft is exploring a deal that would allow it to buy back shares from public shareholders, essentially taking the company off the stock market. 
While the Guillemot family wants to maintain control, Tencent's <a href="https://www.benzinga.com/general/24/10/41356456/tencent-may-join-forces-for-ubisoft-bid">significant stake in the company</a> means it will likely demand a larger say in future business decisions.
&#8220;We remain committed to making decisions in the best interests of all of our stakeholders,&#8221; a spokesperson for Ubisoft told Eurogamer. &#8220;In this context, as we have already indicated, the Company is also reviewing all its strategic options.&#8221;
<h3 class="wp-block-heading">Struggling With Financial Losses</h3>
The buyout discussions come amid tough financial times for Ubisoft. The company has faced layoffs, staff walkouts, and a series of underperforming game releases. <a href="https://www.benzinga.com/general/gaming/24/09/40717689/star-wars-outlaws-sales-slump-ubisoft-shares-hit-near-10-year-low">Star Wars Outlaws sold below expectations</a>, and Assassin&#8217;s Creed Shadows, one of Ubisoft's flagship titles, has been delayed until February 2025.
Earlier this week, Ubisoft announced it would close several studios, cutting 277 jobs, while <a href="https://www.benzinga.com/24/12/42320697/277-jobs-cut-as-ubisoft-ends-xdefiant-development">pulling the plug on the live-service shooter XDefiant. </a>
<h3 class="wp-block-heading">Tencent's Growing Influence</h3>
Tencent, already the second-largest shareholder of Ubisoft, has been increasingly active in the gaming industry, having acquired stakes in major companies such as Epic Games and <a href="https://www.benzinga.com/general/social-media/24/12/42275520/riot-games-expands-creator-rules-off-platform-misconduct-faces-penalties">Riot Games. </a>
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/12/42305217/gamers-now-watch-more-than-they-play-how-publishers-can-reclaim-lost-revenue-report">Gamers Now Watch More Than They Play — How Publishers Can Reclaim Lost Revenue: Report</a></li>
</ul>
Image made with photos from Shutterstock.

The <a href="https://www.benzinga.com/topic/esports">global esports market</a> is poised for explosive growth, with a recent report from Arizton Advisory &amp; Intelligence projecting it will exceed $5 billion by 2029, fueled by a compound annual growth rate (CAGR) of 17.48%. 
To put this in perspective, industries like American football and global music show significantly lower CAGRs of 6.9% and 7.8%, respectively, the <a href="https://www.arizton.com/market-reports/global-esports-market">report</a> says.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42249576/target-black-friday-deals-pokemon-shoppers-gotta-catch-em-all">Target Black Friday Deals: Pokémon Shoppers Gotta Catch &#8216;Em All</a>
However, regulatory complexities, emerging technologies, and strategic market shifts are shaping the industry&#8217;s future. In dialogue with Benzinga, Arizton&#8217;s Associate Consultant, Abhiyank Verma, shared insights into the challenges and opportunities ahead for esports investors and stakeholders.
<h3 class="wp-block-heading">Navigating The Challenges Of The Esports Industry</h3>
&#8220;Regulatory uncertainties remain a major challenge for esports companies,&#8221; said Verma. He added that governance frameworks vary across regions, creating a fragmented landscape.
"For instance, South Korea leads the way with structured governance through the Korea Esports Association (KeSPA), ensuring fairness and player welfare," Verma shared. 
On the other hand, regions like North America and Southeast Asia rely on fragmented or industry-driven policies, making it difficult to manage player rights and advertising regulations.
Other regions face their own hurdles. "Saudi Arabia enforces strict content controls under Vision 2030, and China imposes tight restrictions on gaming time and content," Verma noted, adding that these measures complicate global operations. 
<h3 class="wp-block-heading">Emerging Technologies Shaping The Future Of Esports</h3>
The adoption of cutting-edge technologies like Augmented Reality (AR) and Virtual Reality (VR) is revolutionizing the esports experience. 
As Verma puts it, "AR enhances real-world environments by overlaying digital elements, enriching gameplay with real-time visuals and data."
VR, on the other hand, transports players to fully virtual worlds, providing &#8220;unparalleled inmmersion.&#8221; Together, these technologies are unlocking new possibilities, from mixed-reality tournaments to enhanced spectator experiences.
The <a href="https://www.benzinga.com/topic/arvr">global impact of AR and VR </a>is already evident. For instance, in the U.S., initiatives like Golden Gloves VR are blending fitness with competitive gaming, while Canada's Dark Slope advances VR-based experiences. The United ArabE is leveraging these innovations to bolster its economy, with Dubai's VR Park projected to add $4.1 billion by 2030. Meanwhile, China's Meta-Tencent partnership showcases the growing role of immersive technology in competitive gaming.
"These technologies are driving trends that expand audiences and unlock economic opportunities," Verma emphasized, underscoring their transformative potential for the esports ecosystem.
<h3 class="wp-block-heading">Advice For Investors Eyeing Esports Growth</h3>
For investors looking to tap into this booming market, Verma stressed the importance of diversification, strategic partnerships, and emerging markets.
<ul>
<li>Revenue Diversification: "Traditional revenue sources such as sponsorships and tournament winnings remain vital," Verma explained, but esports organizations are branching out. He pointed to in-game purchases, virtual goods, subscription services, and digital collectibles as emerging revenue streams that cater to fans&#8217; demand for exclusive content.</li>
<li>Strategic Partnerships: Collaborations with game developers and streaming platforms are essential. "Partnerships with companies like Tencent Holdings ADR&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) Riot Games, Blizzard, and Microsoft Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision ensure a steady supply of new titles and competitive events," said Verma. Streaming platforms like Twitch, Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) YouTube, and Meta Platforms Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Facebook Gaming also play a critical role in expanding esports' reach and community engagement.</li>
<li>Emerging Markets: Regions like Southeast Asia, India, and the Middle East are experiencing rapid growth due to improved internet infrastructure and smartphone adoption. "With the rise of fan engagement technologies, including VR, AR, and interactive live-streaming, esports organizations are creating new ways for fans to interact with content." </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/24/11/42249737/antitrust-lawsuit-against-steam-expands-to-include-all-developers-since-2017">Antitrust Lawsuit Against Steam Expands To Include All Developers Since 2017</a></li>
</ul>
Photo by <a href="https://unsplash.com/es/@florianolv?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Florian Olivo</a> on <a href="https://unsplash.com/es/fotos/persona-sentada-en-una-silla-de-juego-mientras-juega-a-un-videojuego-Mf23RF8xArY?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a>.

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Esports Market Set To Surpass $5 Billion By 2029: What Investors Need To Know

Larian Studios, the developer of Baldur's Gate 3, achieved significant financial success in 2023, as revealed by newly published records from its Dublin-based holding <a href="https://www.benzinga.com/general/gaming">company. </a>
The studio reported a pre-tax profit of 249 million euros (approximately $260.9 million) and total revenue of 427 million euros, largely driven by the release of Baldur's Gate 3 in August.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42121273/baldurs-gate-3-sees-more-players-in-2024-than-during-launch-year-heres-why">Baldur&#8217;s Gate 3 Sees More Players In 2024 Than During Launch Year: Here&#8217;s Why</a>
This marks a substantial turnaround from Larian's 2022 financial performance, which saw 22.7 million euros in revenue and a loss of 214,000 euros. The success of Baldur's Gate 3 has not only bolstered the studio's financial standing but also established the game as a major player in the RPG market.
<h1 class="wp-block-heading">Sales and Licensing Revenue</h1>
Although Larian did not disclose exact sales figures for the game, a <a href="https://www.independent.ie/business/irish/dublin-firm-behind-baldurs-gate-game-posts-249m-profit-after-runaway-success/a2033961431.html">report</a> from the Irish Independent estimates it sold around 15 million copies by the end of 2023.
This aligns with earlier statements from publishing director Michael Douse, who noted sales exceeding 10 million. Additionally, Hasbro Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HAS#NASDAQ">HAS</a>), the parent company of Dungeons &amp; Dragons owner Wizards of the Coast, confirmed the game generated $90 million in licensing revenue.
The game's popularity continued into 2024, with Douse reporting a 20% increase in daily active users compared to the previous year, supported by ongoing interest in community-created mods.
<h1 class="wp-block-heading">Future Plans and Ownership</h1>
Larian CEO Swen Vincke pointed out the studio's strengthened position in a September<a href="https://www.ign.com/articles/baldurs-gate-3-one-year-later-larian-interview"> interview</a> with IGN, stating that Larian is now able to "pick our own destiny and our own path." Rather than developing DLC or a sequel for Baldur's Gate 3, the company plans to focus on new original projects.
Despite Vincke's majority ownership of Larian's ordinary shares, the Irish Independent reported that Chinese tech company Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) holds a significant share of preference stock through its Tencent Cloud Europe division.
<h1 class="wp-block-heading">Global Development and Growth</h1>
Larian employed a "follow the sun" development approach for Baldur's Gate 3, utilizing its network of studios across cities such as Dublin, Ghent, Kuala Lumpur and Quebec to maintain round-the-clock production. This method, combined with the game's success, has elevated Larian's profile within the industry.
While Larian has a history of well-regarded titles, such as Divinity: Original Sin, the success of Baldur's Gate 3 represents a new level of commercial achievement for the studio.
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Photo: Shutterstock.

Global

How Baldur's Gate 3 Turned Larian Studios Into A $447 Million Powerhouse

Baldur&#8217;s Gate 3 is showing no signs of slowing down, with more players jumping into the<a href="https://www.benzinga.com/general/gaming"> game than ever. </a>
According to Michael Douse, Larian Studios' director of publishing, the game's average daily peak concurrent players are up 3% compared to last year, while average daily active users have increased by 20%.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42093704/starfield-reaches-15-million-players-with-updates-new-content">Starfield Reaches 15 Million Players With Updates, New Content</a>
"If you zoom out on our sales chart, it looks like the heartbeat of a happy little guy," Douse shared on social media platform X.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I am also happy to announce we have achieved 1 (one) more sale in The Holy See, the Vatican itself. Thank you Mr Pope and enjoy the game.
&mdash; Very AFK (@Cromwelp) <a href="https://twitter.com/Cromwelp/status/1858534543206347137?ref_src=twsrc%5Etfw">November 18, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h3 class="wp-block-heading">Modding Fuels The Game's Continued Success</h3>
Part of the game's staying power is its modding community. Since Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) backed Larian added official mod support with Patch 7, fans have downloaded over 50 million mods. Some mods have even brought humor to the table, with 10,000 downloads dedicated to renaming Withers, the game's undead NPC, to "Bone Daddy."
Douse described the mods as "very good," reflecting how they continue to attract and engage players. Larian's CEO, Swen Vincke, previously called mod support a way for players to take over and expand the game's world.
<h3 class="wp-block-heading">What's Next For Larian Studios</h3>
While Baldur's Gate 3 remains a hit, Larian is already working on its next projects. The studio <a href="https://www.benzinga.com/general/gaming/24/03/37882963/sad-news-for-baldurs-gate-3-fans-larian-studios-ends-downloadable-content-sequel-plans-moves-beyon">briefly considered Baldur's Gate 4 </a>but decided to explore something new. 
<a href="https://www.benzinga.com/general/gaming/24/05/38938485/larian-studios-creator-of-baldurs-gate-3-launches-seventh-studio-for-very-ambitious-rpgs">Two games are currently in development</a>, both based on original ideas. Larian has teased these as the studio's "best work ever," though details remain secret for now.
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/11/42068231/sony-in-talks-to-acquire-elden-ring-publisher-kadokawa-report">Sony In Talks To Acquire Elden Ring Publisher Kadokawa: Report</a></li>
</ul>
Image courtesy: Larian Studios.

Baldur's Gate 3 Sees More Players In 2024 Than During Launch Year: Here's Why

Chinese gaming giant Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) reported fiscal third-quarter 2024 results Wednesday.
Revenue grew 8% year-on-year to $23.9 billion (CNY 167.19 billion), quashing the <a target="_blank" href="https://www.prnewswire.com/apac/news-releases/tencent-announces-2024-third-quarter-results-302303956.html" rel="noreferrer noopener">analyst consensus estimate of $23.4 billion</a>.
Combined, the MAU of Weixin and WeChat grew by 3% year-on-year&nbsp;to 1.38 billion. Mobile device MAU of QQ grew 0.7% year-on-year&nbsp;to 562 million.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/41907519/sea-ltd-q3-earnings-e-commerce-leads-growth-shopee-on-track-to-hit-gmv-guidance" rel="noreferrer noopener">Sea Q3 Earnings: E-Commerce Leads Growth, Shopee On Track To Hit GMV Guidance, Stock Soars</a>
Fee-based VAS registered subscriptions grew 9% year-on-year&nbsp;to 265 million.
Revenues from VAS increased by 9% Y/Y to&nbsp;CNY82.7 billion. International Games revenues were&nbsp;CNY14.5 billion, up 9% Y/Y, due to robust performances from games including PUBG MOBILE&nbsp;and Brawl Stars. Domestic Games revenues increased by 14% Y/Y to&nbsp;CNY37.3 billion, driven by games including VALORANT, Honour of Kings, Peacekeeper Elite, and DnF Mobile.
Social Networks revenues rose by 4% Y/Y to&nbsp;CNY30.9 billion, supported by growth in app-based game virtual item sales, music subscription revenues and Mini Games platform service fees.
Revenues from Marketing Services were CNY30.0 billion, up 17% Y/Y, driven by robust advertiser demand for Video Accounts, Mini Programs, and Weixin Search inventories. Revenues from FinTech and Business Services rose by 2% Y/Y to CNY53.1 billion.
Gross profit climbed 16% Y/Y to $12.7 billion. The margin expanded by 400 bps to 53%. Adjusted operating profit increased 19% Y/Y to $8.7 billion. The margin grew 400 bps to 37%.
Adjusted net income attributable to equity holders increased 33% Y/Y to $8.5 billion. Adjusted EPS of $0.89 beat the $0.88 <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst consensus estimate</a>.
As of September 30, 2024, Tencent had $60.7 billion in cash and equivalents and generated $8.3 billion in free cash flow.
Tencent&#8217;s Chairman and CEO, Ma Huateng, highlighted strong third-quarter revenue growth, driven by the consistent global performance of established games and contributions from promising new titles. He noted the company&#8217;s enhanced eCommerce approach around Mini Shops, aiming for a seamless and reliable transaction experience across the entire Weixin ecosystem. He also emphasized the growing advantages of AI integration across Tencent&#8217;s products and operations, including marketing services and the cloud. The company plans to continue investing in AI technologies and solutions to benefit users and partners.
Price Action: TCEHY stock closed lower by 2.78% at $51.04 Tuesday.
Photo via Shutterstock
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<li><a href="https://www.benzinga.com/news/earnings/24/11/41908838/tencent-musics-q3-revenue-tops-1-billion-but-monthly-active-users-fall-3-stock-reacts" target="_blank" rel="noreferrer noopener">Tencent Music&#8217;s Q3 Revenue Tops $1 Billion, But Monthly Active Users Fall 3%, Stock Reacts</a></li>
</ul>

Earnings

Equities

Tencent Q3 Earnings: Gaming And AI Fuel Profit Growth, Pony Ma Eyes E-Commerce Expansion

Tencent Holdings Q3 Adj EPS $0.89 Beats $0.88 Estimate, Sales $23.90B Beat $23.38B Estimate

Earnings Misses

Tencent Holdings Q3 2024 Adj. EPS RMB6.34, Inline, Sales RMB167.200B Miss RMB167.855B Estimate

Chinese artificial intelligence (AI) companies, including tech giants Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and ByteDance, are investing heavily in advertising to gain a foothold in the competitive AI market.
In the third quarter alone, these companies spent over 500 million yuan ($70.2 million) on promotional campaigns for various AI applications, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3285132/chinese-ai-firms-are-splurging-ads-report-finds-chatbot-market-gets-crowded" rel="noreferrer noopener">reports</a>.
Among the big spenders, Alibaba allocated nearly 200 million yuan to promote Quark, a cloud storage and online search platform enhanced with generative AI features.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41755579/fidelity-national-information-services-banking-capital-markets-growth-drive-optimis" rel="noreferrer noopener">Fidelity National Information Services' Banking, Capital Markets Growth Drive Optimism, Analysts Say</a>
Spending on its ChatGPT-like service, Tongyi Qianwen, was notably lower at 4.5 million yuan. A Tongyi Qianwen spokesperson disputed this figure, SCMP says.
The significant marketing budgets have sparked concerns within China about the sustainability of such high spending.
Chinese AI startup Moonshot AI, backed by Alibaba and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), is among the top ad spenders, with approximately 150 million yuan devoted to promoting its chatbot.
The company's substantial ad budget reflects the increasingly crowded AI market, where hundreds of chatbots are vying for user attention. However, a source close to Moonshot told the SCMP that AppGrowing's data on the company's ad spending is exaggerated.
Yan Junjie, CEO of Shanghai-based AI firm MiniMax, highlighted a fundamental difference in strategy between Chinese and U.S. AI companies.
While American companies rely on product capabilities to attract users, Chinese companies heavily invest in online marketing to differentiate their offerings.
Chinese tech giants Alibaba, Tencent, and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) spent $7 billion on AI-focused infrastructure and processors in the first half of this year, a significant rise from last year.
Despite increased spending, China's AI capital investments lag behind U.S. firms like Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which <a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">spent $106 billion</a>. Wedbush analyst Dan Ives <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41151741/nvidias-ai-leadership-to-drive-1-trillion-market-growth-with-accenture-partnership-" rel="noreferrer noopener">projected $1 trillion</a> in AI capital spending by U.S. tech giants, with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) a key beneficiary.
Price Action: BABA stock traded lower by 2.93% at $96.31 at the last check on Wednesday.
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<li><a href="https://www.benzinga.com//node/41773691" target="_blank" rel="noreferrer noopener">US-Listed Chinese Stocks Like Alibaba, JD, Nio Fall After Trump's Win &#8211; What's Going On?</a></li>
</ul>
Photo courtesy: Shutterstock

Emerging Markets

Media

AMZN

BABA

BIDU

GOOG

NVDA

Alibaba's AI Strategy: Massive Ad Spend to Dominate Crowded Market

The United States has announced a ban on investments in China's semiconductor and AI sectors, potentially affecting Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41599095/team-bidens-ban-on-china-tech-investments-could-impact-teslas-ai-plans-report" rel="noreferrer noopener">and its operations in the region</a>.
The&nbsp;Video Game History Foundation&nbsp;(VGHF) and the&nbsp;Software Preservation Network&nbsp;faced a major setback in their ongoing campaign to preserve and grant research access to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41583968/us-copyright-office-blocks-game-preservation-bid-thousands-of-classic-titles-critically-endangered" rel="noreferrer noopener">out-of-print&nbsp;video games</a>.
With the U.S. 2024 presidential election just days away, Vice President&nbsp;Kamala Harris&nbsp;is making a unique play to connect with gamers—an audience often <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41587554/kamala-harris-connects-with-gamers-via-fortnite-in-final-campaign-countdown" rel="noreferrer noopener">sidelined in&nbsp;political campaigns</a>.
Earnings
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) reported third-quarter revenue of $88.27 billion, up 15% year-over-year, beating the Street consensus estimate of $86.31 billion. EPS of $2.12 exceeded the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan" rel="noreferrer noopener">Street consensus estimate of $1.84</a>.
Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) reported third-quarter revenue of $1.373 billion, beating the&nbsp;consensus estimate&nbsp;of $1.358 billion. Adjusted EPS of 8 cents per share, beating analyst<a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41612544/snap-q3-earnings-revenue-beat-eps-beat-500m-buyback-ai-update-and-more" rel="noreferrer noopener"> estimates of 5 cents per share</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41618021/snap-touts-new-ad-formats-and-simple-snapchat-10m-users-trial-growth-driving-feature" rel="noreferrer noopener">Snap Touts New Ad Formats And &#8216;Simple Snapchat&#8217; — 10M Users Trial Growth-Driving Feature</a>
Gaming
Call of Duty: Black Ops 6&nbsp;has set a new franchise record for the biggest release ever, with sales on PlayStation and Steam jumping 60 percent compared to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41662426/black-ops-6-shatters-records-call-of-dutys-biggest-launch-drives-60-sales-spike" rel="noreferrer noopener">last year&#8217;s&nbsp;Modern Warfare III</a>.
Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41609208/tencent-shuts-down-layoff-rumors-while-announcing-major-leadership-shake-up" rel="noreferrer noopener">changes in its&nbsp;leadership structure</a>.
Ubisoft has launched its first blockchain game, Champions Tactics: Grimoria Chronicles, a tactical NFT<a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/10/41632648/ubisoft-launches-blockchain-game-with-nfts-priced-as-high-as-64-000" rel="noreferrer noopener"> battler now available on PC</a>.
Sony Group Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) announced the November PlayStation Plus lineup, <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41633013/sony-adds-new-death-note-game-to-november-ps-plus" rel="noreferrer noopener">featuring Death Note Killer Within</a>.
Technology
A Russian court has ordered&nbsp;Alphabet Inc.‘s Google&nbsp;to pay a massive fine of $20 decillion for restricting content from Russian media outlets. The fine, which is expected to increase, is&nbsp;a result <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41621390/google-just-got-fined-in-russia-and-its-more-than-the-worlds-gdp-20-decillion-for-blocking-media" rel="noreferrer noopener">of a long-standing legal dispute</a>.
Jim Cramer&nbsp;said that&nbsp;Alphabet plans to increase investments in artificial intelligence infrastructure next year can significantly <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">benefit&nbsp;</a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">NVIDIA Corp </a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</a>.
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is all set to&nbsp;integrate the powerful&nbsp;M4&nbsp;processor into its&nbsp;Mac&nbsp;lineup. The new chip will significantly increase core counts compared to its predecessor. This will ensure a marked improvement <a target="_blank" href="https://www.benzinga.com/news/24/10/41565581/mac-mini-may-shrink-to-apple-tv-size-as-cupertino-prepares-to-unveil-new-macs-this-week-expect-ai-an" rel="noreferrer noopener">in daily usage from older models</a>.
Apple is working on developing a new smart home display inspired by <a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">the&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">iMac G4's</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">&nbsp;design</a>.
The release of iOS 18.1 brought&nbsp;Apple&#8217;s&nbsp;new AI-powered features, known as&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">Apple Intelligence</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">, to iPhone users</a>.
Apple has reportedly initiated initial manufacturing efforts for next year&#8217;s entry-level iPhone model, expected to be named the&nbsp;iPhone 17. For the first time, this early-stage development is taking place in India, moving away from <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41616953/apple-wants-to-see-if-it-can-build-iphone-17-from-scratch-in-india-report" rel="noreferrer noopener">Apple&#8217;s traditional reliance on China</a>.
Apple introduced a&nbsp;fresh&nbsp;Mac mini&nbsp;Tuesday featuring the new M4 and M4 Pro chips, compactly engineered to maximize performance within a <a target="_blank" href="https://www.benzinga.com/news/24/10/41607481/apples-refreshes-mac-mini-smaller-form-factor-m4-chip-power-and-carbon-neutral" rel="noreferrer noopener">smaller 5×5-inch form factor</a>.
Artificial Intelligence (AI)
Sierra, the AI&nbsp;startup co-founded by former&nbsp;Salesforce co-CEO and&nbsp;OpenAI&nbsp;chairman&nbsp;Bret Taylor,&nbsp;has achieved a valuation of $4.5 billion <a target="_blank" href="https://www.benzinga.com/news/24/10/41591558/bret-taylors-ai-startup-sierra-hits-4-5b-valuation-just-a-year-after-launch-openai-chairs-latest-ven" rel="noreferrer noopener">following a successful funding round</a>.
OpenAI&nbsp;CFO&nbsp;Sarah Friar&nbsp;revealed that a monumental 75% of the AI startup&#8217;s revenue comes from consumer <a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">subscriptions to just one service –&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">ChatGPT</a>.
OpenAI&nbsp;announced&nbsp;that its flagship product, ChatGPT, is now capable of crawling the web for up-to-date news, sports scores,<a target="_blank" href="https://www.benzinga.com/news/24/10/41663190/openai-rolls-out-chatgpt-search-google-shares-slide" rel="noreferrer noopener"> stock quotes and more</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41566623/steve-huffman-says-people-go-on-google-to-land-reddit-results-it-has-answers-advice-perspectives-alp" rel="noreferrer noopener">Steve Huffman Says People Go On Google To Land Reddit Results: It Has &#8216;Answers, Advice, Perspectives&#8217; — Alphabet&#8217;s Search Dominance Under Threat?</a>

SNAP

Sony Group Corporation American Depositary Shares

SONY

TSLA

Consumer Tech News (Oct 28-Nov 1): Apple Starts Manufacturing Entry-Level iPhone Model, US Bans Investments In China's Semiconductor & AI, & More

Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent changes in its<a href="https://www.benzinga.com/general/gaming"> leadership structure. </a>
This response came after an internal email leaked, informing staff about significant personnel adjustments.
<h1 class="wp-block-heading">Key Leadership Changes</h1>
On Oct. 25, the internal email revealed that Zeng Yu, vice president of Tencent Interactive Entertainment Group (IEG), would no longer lead the technical line of the IEG or the Technology &amp; Content Platform within the Platform and Content Group.
See Also: <a href="https://www.benzinga.com/general/gaming/24/10/41464208/tencents-delta-force-hawk-ops-open-beta-to-launch-in-december-taking-aim-at-call-of-duty">Tencent&#8217;s Delta Force: Hawk Ops Open Beta To Launch In December, Taking Aim At Call Of Duty</a>
In a <a href="https://www.yicaiglobal.com/news/tencent-denies-rumored-downsizing-at-digital-entertainment-unit-confirms-big-staff-changes">statemen</a>t to Yicai, a Tencent spokesperson clarified that "more than 10 individuals" have been affected by these changes, but the company is not implementing widespread job cuts.
The spokesperson reiterated that Tencent's subsidiary, TiMi Studio Group, which employs around 6,000 people across 13 studios, is actively recruiting new staff. This contradicts earlier reports suggesting the company might merge teams and lay off about 1,200 employees, representing 20% of its workforce.
In addition to addressing rumors about potential job losses, Tencent also denied speculation about a 30% staff cut at its LightSpeed Studios.
<h1 class="wp-block-heading">Industry Context and Future Prospects</h1>
These leadership changes come at a time when Tencent is reportedly in discussions with Guillemot Brothers Ltd. about strategies to stabilize Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>), which faces <a href="https://www.benzinga.com/general/gaming/24/09/41053665/ubisoft-faces-challenges-star-wars-outlaws-sales-struggles-assassins-creed-shadows-delay-employee-">several challenges</a>. These talks could lead to a potential buyout of Ubisoft, taking the publisher private.
Price Action: Tencent is currently trading at $53.82, down 0.49% in the past 24 hours, <a href="https://www.benzinga.com/pro/">according</a> to Benzinga Pro.
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</ul>
Photo: Shutterstock.

Management

Tencent Shuts Down Layoff Rumors While Announcing Major Leadership Shake-Up

Rupert Murdoch's Dow Jones and the&nbsp;New York Post have initiated legal proceedings against&nbsp;Jeff Bezos-backed AI firm&nbsp;Perplexity, alleging unauthorized use of their content and <a target="_blank" href="https://www.benzinga.com/news/24/10/41442679/rupert-murdochs-dow-jones-new-york-post-sue-jeff-bezos-backed-perplexity-for-copyright-infringement" rel="noreferrer noopener">redirection of traffic to its platforms</a>.
Entertainment
Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) has ceased allowing customers to subscribe to Hulu and Disney+ via Apple Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) App Store, thereby avoiding the iPhone <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/10/41443702/disney-and-hulu-stream-away-from-apples-30-toll-bridge-what-it-means-for-the-iphone-maker" rel="noreferrer noopener">maker's in-app purchase fees</a>.
Netflix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) has shut down its Southern California AAA game studio, Team Blue, marking a significant <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">shift in its&nbsp;gaming ambitions</a>.
Gaming
Ahead of Call of Duty: Black Ops 6's release,&nbsp;Microsoft Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision has announced a new anti-cheat initiative aimed at removing cheaters from the game within <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41435803/activisions-new-ai-strategy-aims-to-ban-call-of-duty-cheaters-within-one-hour-of-their-first-match" rel="noreferrer noopener">one hour&nbsp;of their first match</a>.
Insomniac Games has announced that&nbsp;Marvel&#8217;s Spider-Man 2&nbsp;will not receive any additional story content, effectively ending fan hopes <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41438398/insomniac-games-confirms-no-additional-story-add-ons-for-marvels-spider-man-2" rel="noreferrer noopener">for&nbsp;downloadable content (DLC)</a>.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/esg/24/10/41426513/plug-power-evgo-enovix-analyst-clean-tech-picks-for-navigating-election-exposure-hedging-uncertainty" rel="noreferrer noopener">Plug Power, EVgo, Enovix: Analyst Clean Tech Picks For Navigating Election Exposure, Hedging Uncertainty</a>
Tencent Holding Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) is set to launch the global open beta for Delta Force: Hawk <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41464208/tencents-delta-force-hawk-ops-open-beta-to-launch-in-december-taking-aim-at-call-of-duty" rel="noreferrer noopener">Ops on PC&nbsp;starting December 5</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41420451/openais-chinese-cousins-alibaba-and-bytedance-are-slashing-ai-costs-and-defying-us-chip-sanctions-be" rel="noreferrer noopener">OpenAI&#8217;s Chinese Cousins Alibaba, And ByteDance Are Slashing AI Costs And Defying US Chip Sanctions: Beijing&#8217;s Strength Is To &#8216;Build Fast, Build Reliably And Build Cheap&#8217;</a>
Naughty Dog has rolled out significant updates for The Last of Us Part 1 and The Last of Us Part 2 Remastered on <a href="https://www.benzinga.com/general/gaming/24/10/41466239/naughty-dogs-the-last-of-us-games-prepped-for-ps5-pro-with-4k-support" target="_blank" rel="noreferrer noopener">Sony Group Corporation</a><a href="https://www.benzinga.com/general/gaming/24/10/41466239/naughty-dogs-the-last-of-us-games-prepped-for-ps5-pro-with-4k-support" target="_blank" rel="noreferrer noopener">'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation 5</a>.
Technology &amp; Smartphones
QUALCOMM Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) unveiled its latest high-end smartphone SoC, the&nbsp;Snapdragon 8 Elite, which boasts a new Oryon CPU <a target="_blank" href="https://www.benzinga.com/news/24/10/41445327/qualcomms-new-chipset-brings-multi-modal-generative-ai-to-android-phones-boosting-competition-with-i" rel="noreferrer noopener">and enhanced AI capabilities</a>.
QUALCOMM has been threatened by Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) with the cancelation of its chip design license, leaving the San Diego-based<a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41481425/softbank-backed-arm-threatens-to-cancel-qualcomms-chip-design-license-ahead-of-trial-in-december" rel="noreferrer noopener"> semiconductor giant with 60 days&#8217; notice</a>.
NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) quietly introduced a new AI model, Llama-3.1-Nemotron-70B-Instruct, that has reportedly outperformed <a target="_blank" href="https://www.benzinga.com/news/24/10/41422278/nvidias-new-free-open-source-ai-model-reportedly-outperforms-openais-gpt-4o-anthropics-claude-3-5-so" rel="noreferrer noopener">its competitors in benchmark tests</a>.
Indian billionaire&nbsp;Mukesh Ambani joined&nbsp;NVIDIA&#8216;s CEO&nbsp;Jensen Huang for a fireside chat in Mumbai on Thursday as the latter addressed the Nvidia AI Summit India <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41509500/nvidia-ceo-jensen-huang-meets-indian-billionaire-mukesh-ambani-duo-forge-partnership-to-build-ai-inf" rel="noreferrer noopener">at the city&#8217;s Jio World Convention Centre</a>.
The duo discussed India&#8217;s information technology industry, which Huang said was world-renowned for its large-scale presence and deep expertise. In the past few years, 200,000 IT professionals have been <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41509500/nvidia-ceo-jensen-huang-meets-indian-billionaire-mukesh-ambani-duo-forge-partnership-to-build-ai-inf" rel="noreferrer noopener">upscaled to work with AI</a>.
Chinese tech giant&nbsp;ByteDance Ltd.&nbsp;has dismissed an intern for allegedly disrupting the training of <a target="_blank" href="https://www.benzinga.com/news/24/10/41422474/tiktok-parent-fires-intern-for-maliciously-interfering-with-ai-training-denies-10m-damage-claims-ami" rel="noreferrer noopener">one of its artificial intelligence models</a>.
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly scaling back production of its $3,500 Vision Pro headset, shifting focus <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41499682/apple-to-cut-vision-pro-production-cheaper-model-expected-in-2025-report" rel="noreferrer noopener">toward a more affordable model for 2025</a>.
Artificial Intelligence
OpenAI&nbsp;rival&nbsp;Anthropic&nbsp;has unveiled an upgrade to its its AI model Claude 3.5 Sonnet along with introducing a new model, Claude 3.5 Haiku. The Claude 3.5 Sonnet model introduces a groundbreaking feature that allows it to interact with<a target="_blank" href="https://www.benzinga.com/news/24/10/41481214/now-ai-can-operate-computers-like-humans-openai-rival-backed-by-google-unveils-claude-upgrades-amid" rel="noreferrer noopener"> computers in a human-like manner</a>.
Marc Benioff, CEO of Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), took to social media to criticize Microsoft for <a href="https://www.benzinga.com/news/24/10/41444585/copilots-a-flop-because-microsoft-lacks-the-data-salesforce-ceo-slams-rebranding-of-ai-tool-to-agent" target="_blank" rel="noreferrer noopener">rebranding its Copilot as "agents."</a>
In a recent development,&nbsp;Character.AI&nbsp;has issued a public apology following the tragic death by suicide of a 14-year-old boy who had been interacting with their chatbot. The company has acknowledged the incident and announced updates to<a target="_blank" href="https://www.benzinga.com/news/24/10/41491088/ai-chatbot-maker-publicly-apologizes-after-teens-death-in-florida" rel="noreferrer noopener"> enhance the safety measures on their platform</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41420671/mark-zuckerberg-or-elon-musk-openai-ceo-sam-altman-says-hed-back-this-tech-titan-in-a-cage-fight" rel="noreferrer noopener">Mark Zuckerberg Or Elon Musk? OpenAI CEO Sam Altman Says He&#8217;d Back This Tech Titan In A Cage Fight</a>

NFLX

QCOM

Consumer Tech News (Oct 21-Oct 25): Apple May Scale Back Production Of Vision Pro Headset, Netflix Restructures Gaming Division

Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) is set to launch the global open beta for Delta Force: Hawk Ops on PC <a href="https://www.benzinga.com/general/gaming">starting Dec. 5. </a>
This free-to-play tactical first-person shooter, developed by Tencent's Timi Studio Group, aims to rival major titles like Call of Duty and Battlefield. Originally developed by NovaLogic, the Delta Force series first debuted in 1998 and saw several successful releases before NovaLogic closed in 2016.
See Also: <a href="https://www.benzinga.com/24/10/41356456/tencent-may-join-forces-for-ubisoft-bid">Tencent May Join Forces For Ubisoft Bid</a>
Tencent announced Delta Force: Hawk Ops last year for PC, consoles, and mobile, reviving the franchise. The game has gone through several alpha playtests, but the upcoming open beta will mark the first version in which player progress will not be reset.
The company revealed in a blog post that this beta is considered the "initial release version" of the game. Full live-service content updates will roll out alongside its first season, Genesis.
<h3 class="wp-block-heading">Gameplay And Features</h3>
The open beta will feature two primary game modes: Havoc Warfare, a 32-player multiplayer mode, and Hazard Operations, a squad-based PvPvE experience. New maps, operators, weapons, and vehicles will be introduced as part of Genesis, with ongoing updates planned.
Tencent has confirmed that paid content, including Battle Passes and cosmetic options for weapons and vehicles, will be available at the beta&#8217;s launch. However, the company insists there will be no &#8220;pay-to-win&#8221; elements.
<h3 class="wp-block-heading">Single-Player Campaign And Future Updates</h3>
A Black Hawk Down-inspired single-player campaign is in development but won't be part of the open beta. Tencent plans to introduce this mode at a later date. Future updates will also include new maps, modes, and improvements based on player feedback, with ongoing efforts to enhance performance, anti-cheat measures, and controller support.
Delta Force: Hawk Ops will be available on PC through Tencent&#8217;s official browser, Steam, and the Epic Games Store. PlayStation, Xbox, and mobile versions are expected to release in early 2025.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/05/39069011/tencents-new-hit-game-dnf-mobile-earns-140m-in-first-week">Tencent&#8217;s New Hit Game DnF Mobile Earns $140M In First Week</a></li>
</ul>
Photo: Shutterstock

Tencent's Delta Force: Hawk Ops Open Beta To Launch In December, Taking Aim At Call Of Duty

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and its Chinese hyperscalar rivals have responded to the domestic regulatory crackdown and economic weakness by opening their walled gardens to one another.
Alibaba will now allow merchants on its e-commerce platforms to access logistics services from rival JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) to accomplish their growth targets in a lackluster economy.
JD Logistics, which operates over 1,600 automated warehouses and employs about 370,000 delivery workers, directly competes with Alibaba&#8217;s Cainiao Smart Logistics Network.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41359993/alibaba-and-baidu-bet-big-on-autonomous-driving-back-700m-horizon-robotics-ipo" rel="noreferrer noopener">Alibaba And Baidu Bet Big On Autonomous Driving, Back $700M Horizon Robotics IPO</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14.png" alt="" class="wp-image-600216" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/17061719/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
According to JD Logistics, a wide range of logistics services—from warehousing to shipping—will now be available to sellers on Alibaba&#8217;s significant platforms, Taobao and Tmall, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3282626/alibaba-opens-walled-garden-rival-jdcoms-logistics-services" rel="noreferrer noopener">reports</a>.
Merchants can choose JD.com as their preferred courier service, enabling consumers to track their deliveries directly through Alibaba&#8217;s interfaces.
Both companies have been at odds for years, blocking each other&#8217;s services in their ecosystems. However, regulatory pressure and the slowing domestic economy have forced China&#8217;s tech giants to reconsider their approaches.
The shift toward more open ecosystems is becoming increasingly evident. For instance, Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) recently enabled users to shop directly on Alibaba&#8217;s Taobao through the WeChat app. Additionally, Taobao and Tmall will soon begin accepting WeChat Pay.
Meanwhile, China is weighing&nbsp;a fiscal stimulus of 6 trillion yuan, or $850 billion, in ultra-long special treasury bonds over the next three years after slashing the key rates to boost the economy.
Due to the announcements of stimulus measures, Alibaba and JD.com stocks saw gains of 21%- 51% in the last thirty days.
Investors can gain exposure to China&#8217;s tech barometer, Alibaba, through SPDR NYSE Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XNTK#NYSE">XNTK</a>) and Invesco Nasdaq Internet ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNQI#NASDAQ">PNQI</a>).
Price Actions: At the last check on Thursday, BABA stock was down 0.86% to $101.29, and JD was down 1.95%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41336235/chinese-e-commerce-firms-alibaba-jd-pdd-gear-up-for-singles-day-shopping-festival" target="_blank" rel="noreferrer noopener">Chinese E-Commerce Firms Alibaba, JD, PDD Gear Up For Singles&#8217; Day Shopping Festival</a></li>
</ul>
Image by Tada Images via Shutterstock

Government

Regulations

PNQI

XNTK

Alibaba And JD.com Ease Rivalry, Share Logistics In Response To Economic Challenges

<h4>Key Takeaways:</h4>
<ul>
<li>Ubisoft&rsquo;s share price fell to a 10-year low in September due to poor sales and the delayed release of &ldquo;Assassin&rsquo;s Creed Shadows&rdquo;</li>
<li>Guillemot&nbsp;and Tencent, holding&nbsp;20.5% and 9.2% of Ubisoft voting rights respectively, would be acting in concert for a potential buyout&nbsp;</li>
</ul>
By Ken Lo
The game developer behind the action adventure &ldquo;Assassin&rsquo;s Creed&rdquo; has lately found itself on the losing side of a battle for market confidence.
Ubisoft, a French company listed on the Paris bourse, scored a hit with its combative gameplay when the franchise launched but has more recently struggled with its business performance, suffering a 58% drop in its share price this year that slashed the firm&rsquo;s market value to 1.3 billion euros ($141.6 million).
However, the beaten-down price could make the company an attractive takeover target, given Ubisoft&rsquo;s credentials in the gaming industry. And two main shareholders are reported to be considering riding to the rescue with a joint buyout that could take the company private.
According to&nbsp;<a href="https://finance.yahoo.com/news/tencent-guillemot-family-said-consider-134712826.html">Bloomberg</a>, the company&rsquo;s founders, the Guillemot family, have been in talks with strategic partner and fellow Ubisoft shareholder&nbsp;Tencent Holdings Ltd.&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) about options including an acquisition. The report, quoting people with knowledge of the matter, said discussions were still at a preliminary stage. As of the end of April, Tencent held 9.2% of Ubisoft&rsquo;s net voting rights while Guillemot held approximately 20.5%. Therefore, market regulators would regard the two parties as acting in concert for any buyout bid.
Ubisoft did not directly comment on the report and the resulting market excitement, but issued a statement saying it &ldquo;regularly reviews all its strategic options in the interest of its stakeholders&rdquo; and would inform the market of any developments if and when appropriate. Tencent has so far stayed silent on the speculation.
<h3>Seeking A&nbsp;Savior</h3>
In the face of a plummeting Ubisoft share price, minority shareholders including AJ Investments and Blackstone Inc. had been putting pressure on Guillemot to explore a privatization or a sale to a strategic investor. Analysts say Tencent and Guillemot are probably keen to shield Ubisoft from any outside bid, wanting to retain the current management structure.
The Covid pandemic disrupted Ubisoft&rsquo;s game production, with knock-on effects on the business.&nbsp;&nbsp;New titles were delayed or cancelled, and underwhelming sales of its &ldquo;Star Wars Outlaws&rdquo; game triggered a downturn in the share price.
Last month Ubisoft delivered another blow to investor confidence, confirming that the launch of its highly anticipated &ldquo;Assassin&rsquo;s Creed Shadows&rdquo; would be delayed until February 2025. The share price sank rapidly to a decade low of 9.89 euros as brokerages lowered their outlooks for the stock. But when the potential Tencent-Guillemot alliance came to light, Ubisoft&rsquo;s share price rallied to a stable level at 13.06 euros.
A purchase of Ubisoft &ndash; valued at just over 10 billion yuan &ndash; would hardly be a stretch for China&rsquo;s biggest gaming company. Tencent&rsquo;s half-year&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0814/2024081400282.pdf">earnings</a>&nbsp;revealed that the tech giant had net cash of 71.76 billion yuan and total cash of 415.2 billion yuan in hand as of the end of June. The company generated free cash flow of 92.3 billion yuan in the first half of 2024, as its video and game businesses rebounded from a slump last year.
Over the past decade, the industry has shifted its focus from desktop games to mobile networks and cloud gaming.&nbsp;&nbsp;With its deep pockets,&nbsp;Tencent has&nbsp;been able to evolve with the market,&nbsp;building a user base of nearly 1.4 billion for WeChat and Weixin and launching some of the world&rsquo;s most profitable games, such as &ldquo;Honor of Kings&rdquo; and &ldquo;PUBG Mobile&rdquo;. The mobile and multiplayer products, with innovative and high-quality gameplay, have generated strong returns for&nbsp;Tencent.
<h4>Tencent&rsquo;s Gaming Strategy</h4>
Despite its commercial success, Tencent has not shown much interest in developing blockbuster games that involve the highest production values and costs, known in the industry as&nbsp;AAA games.&nbsp;Developers of&nbsp;China&rsquo;s first ultra-AAA game, the super hit &ldquo;Black Myth: Wukong&rdquo;,&nbsp;originally&nbsp;worked on&nbsp;Tencent&rsquo;s&nbsp;&ldquo;Dou Zhan Shen&rdquo;&nbsp;but core team members Feng Ji and Yang Qi broke away to start a new business in 2014 after disagreements with management. Their&nbsp;former boss, Tencent, still&nbsp;invested 5% in the business.
Tencent rarely acquires game developers that pursue this enhanced quality and has shown no sign of introducing a mobile version of &ldquo;Black&nbsp;Myth:&nbsp;Wukong&rdquo;.&nbsp;Aside from the technical challenge of applying a PC game to a multiplayer mobile platform, a potential clash of corporate cultures would also be a&nbsp;consideration for Tencent.
Since&nbsp;Tencent invested in Ubisoft in 2022 and forged strategic ties with&nbsp;Guillemot, the two parties have not explored any deeper&nbsp;cooperation on games. Therefore, even if Tencent joins&nbsp;Guillemot&nbsp;in defending Ubisoft, it would most likely remain a relatively passive investor, with limited impact on its share price.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Tencent May Join Forces For Ubisoft Bid

The Chinese market, which reopened on Tuesday after a weeklong public holiday, was pressured on Wednesday as domestic traders did not get the additional stimulus they had factored in. Come Thursday, things took a turn for the better as the People&#8217;s Bank of China announced measures to boost the stability of the domestic equity market.
What Happened: In a statement released on its website, the PBoC said it has decided to establish the &#8220;Securities, Funds and Insurance Companies Swap Facility,&#8221; or SFISF, to support qualified securities, funds and insurance companies to exchange bonds, stock exchange-traded funds and CSI 300 constituent stocks and other assets for high-grade liquid assets such as Treasury bonds and central bank bills from the central bank. 
The scale of operation during the first phase is 500 billion yuan ($70.7 billion) and this could be expanded further depending on the situation, the central bank said. Applications from qualified securities, funds and insurance companies will be accepted with immediate effect, it said.
The central bank clarified that the new measure is in order to implement the requirements of the Third Plenary Session of the 20th CPC Central Committee regarding &#8220;establishing a long-term mechanism to enhance the inherent stability of the capital market&#8221; and promote the healthy and stable development of the capital market.&#8221;
See Also: <a href="https://www.benzinga.com/money/best-chinese-stocks">Best Chinese Stocks</a>
Thursday&#8217;s announcement comes on top of the liquidity-boosting measures the central bank announced in late September regarding cutting the reserve requirement ratio, which is the amount of cash banks must hold as reserves, by 50 basis points freeing up about 1 trillion yuan for new lending.
The central bank hinted at the possibility of reducing it by a further 0.25-0.50% points. It also said it would lower the seven-day repo rate by 0.2 points, the interest rate on a medium-term lending facility by about 30 basis points and loan prime rates by 20-25 basis points.
Market Reacts: The Shanghai Composite Index &#8211; the key market gauge of mainland China, rallied strongly following the fresh stimulus. After opening at 3,277.69, modestly higher than the previous close of 3,258.86, the index gave back its gains in early trading and moved below the unchanged line.
Following PBoC&#8217;s announcement, the index recovered. At last check, it traded 2.92% higher at 3,353.91.
Hong Kong&#8217;s Hang Seng Index also rallied over 4%.
US-listed Stocks Rip Higher: U.S.-listed Chinese stocks listed in Hong Kong reflected the buoyancy and were sharply higher by mid-day on Thursday. Among the gainers are:
<ul>
<li>Alibaba Group Holding Limited (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) gained 4.28%.</li>
<li>XPeng, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>) jumped 9.50%.</li>
<li>Li Auto, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LI#NASDAQ">LI</a>) rose 5.96%.</li>
<li>Nio, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) added 6%.</li>
<li>JD.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) climbed 5.63%.</li>
<li>Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) moved up 1.98%.</li>
<li>Baidu, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) moved up 2.47%.</li>
</ul>
The iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) ended Wednesday&#8217;s session down 2.36% at $51.97, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41182930/china-was-tipping-into-a-japan-style-lost-decade-of-deflation-and-stagnation-before-late-septemb">China Was Tipping Into A Japan-Style &#8216;Lost Decade&#8217; Of Deflation And Stagnation Before Late-September Stimulus Announcements, Says Legal Expert</a></li>
</ul>
Image via Shutterstock

Asia

MCHI

XPEV

Alibaba, JD.com, XPeng Soar In Hong Kong As PBOC's Fresh Stimulus To Boost Stock Market Sends Chinese Main Stock Market Gauge Up By 3%

Renowned investor Ray Dalio, founder of Bridgewater Associates, has raised concerns about the complexities of investing in China amid the <a href="https://www.benzinga.com/markets/asia/24/10/41207547/dont-bet-on-chinas-economic-stimulus-yet-as-yuan-faces-volatility-amid-us-election-jobs-data-analyst">country&#8217;s shifting economic policies</a>.
What Happened: Speaking at the Greenwich Economic Forum, Dalio highlighted the challenges posed by Beijing&#8217;s changing stance on capitalism, which has led to significant structural changes in the Chinese economy, <a href="https://www.cnbc.com/2024/10/08/ray-dalio-china-investing-is-tricky-as-beijing-turns-less-favorable-to-capitalism.html">reported</a> CNBC.
"There's something big going on that they had a debt crisis and they also had a capitalism crisis. Are they … favorable to capitalism as we knew it before? I do not believe they are in the same way," Dalio said. 
Dalio pointed out that the Chinese government aims to maintain strict control over the economy, which has impacted investor sentiment. 
The recent enthusiasm for Chinese investments was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">tempered when officials did not announce specific stimulus</a> measures.
Despite expectations for economic revival through policy actions like interest rate cuts, the Chinese markets have seen reduced momentum. The CSI 300 index, which had previously surged over 10%, saw its gains <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">shrink to 5% on Tuesday</a>.
Dalio advised investors to avoid focusing on daily market fluctuations. Meanwhile, hedge funds have been increasing their investments in Chinese stocks, anticipating further stimulus. David Tepper of Appaloosa Management expressed optimism, stating he is heavily investing in China due to recent government support. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/10/41220350/tesla-traders-wild-bet-on-elon-musks-company-ends-in-a-306m-lawsuit-spiral?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Trader&#8217;s Wild Bet On Elon Musk&#8217;s Company Ends In A $306M Lawsuit Spiral</a>
Why It Matters: China&#8217;s economic landscape has been marked by volatility and rapid changes in recent months. A <a href="https://www.benzinga.com/markets/asia/24/10/41213691/fast-and-furious-rally-pushes-chinese-stocks-to-double-s-p-500-performance-year-to-date">dramatic rally</a> in Chinese equities occurred in early October, driven by aggressive monetary easing policies and government commitments to stabilize the property sector. 
This surge saw the MSCI China Index tracked by the iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) outperform other major global markets, doubling the year-to-date gains of the S&amp;P 500,&nbsp;as tracked by the&nbsp;SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).
However, this optimism was short-lived, as Chinese stocks experienced a <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">sharp selloff</a> on Wednesday, with the Hang Seng Index continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index in Hong Kong dropped 1.39% to 20,635.11, following Tuesday's devastating 9.41% plunge — its worst single-day loss since the 2008 financial crisis.
Tech giants faced significant losses <a href="https://www.benzinga.com/markets/asia/24/10/41243227/chinese-stocks-plunge-as-hang-seng-drops-1-39-extending-volatile-streak-tech-giants-jd-com-alibaba-b">during the downturn on Wednesday</a>, with JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) plummeting 7.52% on the Hong Kong stock exchange. Alibaba Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) followed with a decline of 2.75%, while Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) lost 1.65% on HKEX. Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) also experienced a downturn, declining by 1.32%.
Dalio&#8217;s insights come at a time when investors like Michael Burry have made <a href="https://www.benzinga.com/markets/asia/24/08/40386342/big-short-fame-michael-burry-bets-big-on-china-reveals-alibaba-as-top-holding-jd-com-and-baidu-also">significant bets on Chinese stocks</a>, as seen in his hedge fund&#8217;s latest portfolio shift. The evolving economic strategies in China, including potential &#8220;beautiful deleveraging,&#8221; as Dalio previously noted, continue to shape <a href="https://www.benzinga.com/markets/asia/24/10/41157439/ray-dalio-sees-potential-for-beautiful-deleveraging-in-xi-jinpings-economic-strategy-for-china">the investment landscape</a>.
Read Next: 
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<li><a href="https://www.benzinga.com/markets/equities/24/10/41201263/meta-stock-returns-pale-next-to-peter-thiels-secretive-data-company-even-as-mark-zuckerberg-comp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Meta Stock Returns Pale Next To Peter Thiel&#8217;s Secretive Data Company Even As Mark Zuckerberg Company&#8217;s AI Advancements Generate Excitement</a></li>
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Image via Wikimedia Commons
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

ALIBABA GROUP HOLDING LTD by Alibaba Group Holding Limited

BABAF

Ray Dalio Issues Stark Warning As Investors Get Optimistic About China Again: 'There's Something Big Going On...'

Chinese stocks experienced a sharp selloff on Wednesday, continuing a volatile trend across Asia-Pacific markets. The Hang Seng Index (HSI) in Hong Kong dropped 1.39% to 20,635.11, following Tuesday&#8217;s devastating 9.41% plunge—its worst single-day <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41227136/chinese-stocks-plunge-as-stimulus-hopes-fade-hong-kong-posts-worst-daily-decline-si">loss since the 2008 financial crisis</a>.
What Happened: The mainland CSI 300 index also suffered, dropping 5.39%. This sharp reversal comes after weeks of robust performance that had positioned Chinese stocks among the top global performers year-to-date.
Tech giants bore the brunt of the downturn:
<ul>
<li>JD.com (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) plummeted 7.52% on the Hong Kong stock exchange. </li>
<li>Alibaba (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BABAF#OTC">BABAF</a>) fell 2.78%</li>
<li>Baidu (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) lost 1.65% on HKEX</li>
<li>Tencent (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) declined 1.32%</li>
</ul>
Analysts attribute the selloff to investors locking in profits and growing disappointment over the <a href="https://www.benzinga.com/markets/asia/24/10/41223117/alibaba-tencent-jd-com-and-baidu-slide-over-8-as-chinas-28b-stimulus-boost-misses-the-mark">lack of aggressive fiscal stimulus</a> from Beijing. 
The contrast was stark in Japan, where the Nikkei 225 climbed 0.6%, highlighting the divergent market sentiments across the region.
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Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Chinese Stocks Plunge As Hang Seng Drops 1.39%, Extending Volatile Streak — Tech Giants JD.com, Alibaba, Baidu Tread Red Waters

The Chinese government's announcement of a 200 billion yuan ($28 billion) stimulus aimed at local investment projects fell short of market expectations, triggering a <a href="https://www.benzinga.com/markets/24/10/41207862/stimulus-fueled-china-stock-rally-set-to-fizzle">sharp sell-off in major tech stocks</a>.
What Happened: The National Development and Reform Commission (NDRC), China&#8217;s top planning agency, disclosed the allocation at a press conference on Tuesday, <a href="https://edition.cnn.com/2024/10/08/business/china-economy-ndrc-hnk-intl/index.html">reported</a> CNN. 
&#8220;We are confident in achieving the annual economic and social development goals and tasks, and in maintaining sustained, stable and healthy economic and social development,&#8221; said Zheng Shanjie, the commission&#8217;s chairman, according to the report.
China had set a 5% growth target in March. However, recent economic data has been concerning, raising fears that the target might not be met. The country&#8217;s economy is currently grappling with challenges such as a property crisis, weak consumer spending, and high youth unemployment.
To assist local governments dealing with significant debt burdens, Beijing will provide 100 billion yuan ($14 billion) from the central government&#8217;s budget, in addition to an extra 100 billion yuan for investment projects, Zheng stated.
Mainland China's CSI 300 surged over 10% at the open on Tuesday following its return from the Golden Week holiday, but the index pared back gains to close 5.93% higher at 4,256.1.
In Hong Kong, the Hang Seng Index initially plunged more than 10%, before moderating to a 9% loss by its final hour of trading.
Key Chinese tech stocks were hit hard:
<ul>
<li>Alibaba Group Holding Ltd &#8211; ADR (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) fell 8.93% in pre-market trading.</li>
<li>Tencent Holdings Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) dropped 8.32% to HK$ 438.60.</li>
<li>JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>) saw a sharp decline of 11.32% in pre-market trading</li>
<li>Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) slipped 9.10% in pre-market trading.</li>
</ul>
See Also: <a href="https://www.benzinga.com/news/24/10/41208014/absolutely-impossible-for-china-to-become-taiwans-motherland-says-president-lai-ching-te-amid-rising?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">&#8216;Absolutely Impossible&#8217; For China To Become Taiwan&#8217;s &#8216;Motherland,&#8217; Says President Lai Ching Te Amid Rising Pressure From Team Xi Jinping</a>
Why It Matters: The Chinese economy has been facing significant challenges, with the government implementing various measures to stimulate growth. In a recent move, the People&#8217;s Bank of China <a href="https://www.bloomberg.com/news/articles/2024-09-24/china-cuts-bank-reserve-ratio-to-boost-economy-amid-property-woes">cut one of its main interest rates</a> and reduced the amount of cash banks are required to hold in reserve. 
The government also announced cash handouts to disadvantaged citizens and subsidies for recent graduates struggling to find employment.
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Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors

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