Deals
Inside Tencent's Gambit to Dominate a $13 Billion Esports Arena
- The Chinese giant will invest $150 million a year in esports
- It’s working with NBA and Under Armour on revenue deals
This article is for subscribers only.
The screams of 18,000 people packed into a Shanghai stadium swell to a crescendo. Slight of figure and mostly bespectacled, 10 young men take their seats in LED-lined boxes straight out of Tron, don headsets, lock thumbs onto giant smartphones -- and the battle begins. At stake, a $1.8 million purse -- and social media goliath Tencent’s role in a $13 billion esports arena.
Esports is taking off globally but nowhere more so than in China: a nation of over 400 million gamers fueling viewership comparable to U.S. pro sports. At the heart of the world’s biggest gaming market is Tencent Holdings Ltd., which is betting a billion yuan ($150 million) a year that slugfests like Honour of Kings will ensure its primacy in the burgeoning market.