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.

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
Thorough research needed before dagga given prescription drug status - PsychMG

Thorough research needed before dagga given prescription drug status - PsychMG

Psychiatric expert Dr Renata Schoeman challenges plans to recognise dagga as a prescription drug rather than a banned substance.

7 inexcusable reasons why people don't use condoms (when they should)

7 inexcusable reasons why people don't use condoms (when they should)

Dr. Eve explains the importance of condom usage and educates people about the transmission of sexually transmitted infections.

LISTEN: Tropical storm Dineo wreaks havoc and claims lives in Mozambique

LISTEN: Tropical storm Dineo wreaks havoc and claims lives in Mozambique

SA Weather Service says Dineo is expected to affect Limpopo, Mpumalanga and northern KZN.

KZN ANC calls for scrapping of provinces

KZN ANC calls for scrapping of provinces

The African National Congress (ANC) in KwaZulu Natal wants the provinces system scrapped and Cosatu backs this call.

New tender graft evidence has surfaced at City Power says Mayor Mashaba

New tender graft evidence has surfaced at City Power says Mayor Mashaba

Mashaba says new information about tender irregularities has come to light and he is unhappy with the previous investigation.

Ex-cyclone Dineo to hit Limpopo, Mpumalanga overnight - SA Weather Service

Ex-cyclone Dineo to hit Limpopo, Mpumalanga overnight - SA Weather Service

Despite the downgrade, residents in parts of Limpopo and Mpumalanga can still expect flooding and heavy rains.

I have suffered backlash from white people (and black people) - Kasi Mlungu

I have suffered backlash from white people (and black people) - Kasi Mlungu

Anita Ronge, famously known as Kasi Mlungu, talks music career, race and township lifestyle with Eusebius McKaiser.

100 scholarships up for grabs to deserving students

100 scholarships up for grabs to deserving students

Together, the SA and Hungarian governments are offering scholarships for students who want to do bachelor, masters, and PhD degrees.