The Science Of ... , Evergreen Content

How Naspers paid peanuts for Tencent (China’s most valuable company)

In 2001, Cape Town-based Naspers invested $32 million in Tencent, an investment that has grown to more than $80 billion today.

Tencent – owner of the messaging app WeChat – is the most valuable company in China.

Today Naspers owns 34% of Tencent, the fourth largest internet company in the world after Amazon, Google and Facebook.

The Money Show’s Bruce Whitfield interviewed Philip Short (Investment Analyst at Old Mutual Investment Group) for his weekly "The Science Of" feature.

Short discussed Tencent and what it does as well as the truth-is-stranger-than-fiction story behind what must be the best investment ever.

Listen to the wild story in the audio below (and/or scroll down for quotes from it).

The face of Tencent is Pony Ma. He’s been involved since the start. He’s reserved and not a celebrity.

Philip Short

In the mid-2000s Tencent went into online gaming.

Philip Short

WeChat only came along in 2012.

Philip Short

Tencent gets people to play their addictive games for free for up to one or two stages. From there on you have to pay.

Philip Short

Tencent owns an Uber-like business that pushed Uber out of China.

Philip Short

Tencent’s online advertising is growing at 60% per year.

Philip Short

Tencent has just started monetising mobile payments.

Philip Short

We still see ample opportunities in Naspers.

Philip Short

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.


This article first appeared on CapeTalk : How Naspers paid peanuts for Tencent (China’s most valuable company)


Recommended

by NEWSROOM AI
Read More
Why you must buy Naspers now, not later (by Herenya Capital Advisors)

Why you must buy Naspers now, not later (by Herenya Capital Advisors)

Invest yourself rich. Consider buying Naspers (and the two other shares discussed in this stock pick feature).

Is Naspers too dependent on Tencent?

Is Naspers too dependent on Tencent?

We interviewed Naspers CEO Bob van Dijk about the perceived over-reliance of his company on Chinese behemoth Tencent.

Naspers owned Tencent now world’s 11th the most valuable brand (1st in China)

Naspers owned Tencent now world’s 11th the most valuable brand (1st in China)

Internet services company Tencent Holdings, in which Naspers has a 34 percent stake, has surpassed Facebook in brand value.

Naspers owned Tencent buys stake in Kim Kardashian game developer Glu Mobile

Naspers owned Tencent buys stake in Kim Kardashian game developer Glu Mobile

The Chinese tech-firm will pay R1.5bn for a 15 percent stake in the US developer famous for its hit "Kim Kardashian: Hollywood”.

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Naspers is expensive, but geared for growth. Ashburton Investments’ Nick Crail on why you should just be brave and buy its shares.

How once tiny Afrikaans publisher Naspers became an emerging market juggernaut

How once tiny Afrikaans publisher Naspers became an emerging market juggernaut

Bruce Whitfield speaks to historian Professor Lizette Rabe about the story of the Nasionale Pers.

Popular articles
Autopsy report confirms Selahle died of unnatural causes in police custody

Autopsy report confirms Selahle died of unnatural causes in police custody

Tshegofatso Selahle died on Sunday after being arrested by JMPD officers for allegedly skipping a robot in Johannesburg.

To get her money's worth, woman wears her wedding dress for entire year

To get her money's worth, woman wears her wedding dress for entire year

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

[WATCH] Ndlovu Youth Choir shine once again with latest AGT performance

The inspiring South African choirU2's Beautiful Day at America's Got Talent quarter-finals.

Trevor Noah – 4th highest paid comedian on Earth – made R430 million in 2018

Trevor Noah – 4th highest paid comedian on Earth – made R430 million in 2018

Trevor Noah cracked Forbes magazine’s list of highest-paid stand-up comedians in the world.

SA’s richest woman opens up about being a refugee and becoming a billionaire

SA’s richest woman opens up about being a refugee and becoming a billionaire

Magda Wierzycka – Sygnia’s renegade CEO – on her attitude toward money (hopes and fears, successes and failures, etc.).

Former EFF MP: 'I didn't know where the money came from until it was leaked'

Former EFF MP: 'I didn't know where the money came from until it was leaked'

EFF member Tebogo Mokwele and Small Business Development Minister Khumbudzo Ntshavheni respond to leaked CR17 bank statements.

'Aarto Amendment Act takes away right to be tried before an ordinary court'

'Aarto Amendment Act takes away right to be tried before an ordinary court'

Justice Project South Africa chairperson Howard Dembovsky explains what the new bill will mean to motorists.

'I get anxious when people talk to me about money'

'I get anxious when people talk to me about money'

Bruce Whitfield interviews comedian Anne Hirsch about her attitude to money (hopes and fears, successes and failures, etc.).

[WATCH] Father and daughter dance-off changes tune when she starts twerking

[WATCH] Father and daughter dance-off changes tune when she starts twerking

Khabazela shares tweets and Facebook posts that have gone viral.