Tencent is a giant in the world of Chinese technology and beyond. Today they have announced that they will be selling most of its stake in JD.com.
Tencent will reduce is staking from 17% to 2.3%.
The proceeds will help Tencent provide shareholders with a $16.4 billion dividend.
After long being JD’s largest stakeholder, Tencent will give the title to Walmart.
This seems to be a Tencent strategy that has paid off in the long term. Instead of Tencent looking to acquire many companies in adjacent industries – they have decided to acquire minority stakes in a huge number of technology companies globally.
Its far easy to own more when you own a minority. If Tencent were to acquire more companies – they would have issues with Government and regulator approval.