Tencent said to close $2b investment in Chinese short video platform Kuaishou

FILE PHOTO: The logo of Chinese video-streaming startup Kuaishou is seen in Beijing, China May 10, 2017. Picture taken May 10, 2017. REUTERS/Stringer

China’s tech giant Tencent is said to be in final talks to invest $2 billion in short video platform Kuaishou in the latter’s upcoming $3-billion pre-IPO round, according to a local media report. 

The round is expected to see participation from Sequoia Capital, Temasek Holdings, Boyu Capital and Alibaba backed Yunfeng Capital, according to a media report. 

The pre-IPO round would give Kuaishou a valuation of $28.6 billion, the report added.

Tencent, which has invested in Kuaishou’s previous rounds, is the majority shareholder in the video platform. Kuaishou raised $1 billion in its Series E round in 2018. Additionally, a few months later Tencent made a $400-million in the company.   

Since 2012, Kuaishou has also raised funding from Baidu, Morning Venture Capital and China Media Capital.

Along with the financing round, Tencent also signed an exclusive agreement with Kuaishou in November to further cooperation in gaming.  

Tencent is looking to strengthen its position in the short video niche market, a move that will allow it to compete with Bytedance’s Douyin. Tencent has devoted a lot of resources toward building a library of short and mini video offerings, the key to retaining user attention and boosting advertising revenue, but has yet to catch its rival, according to Bloomberg report. 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.