Tencent plans to launch a Valorant eSports league when the hit shooter title debuts in China this year, in one of the strongest signs yet that the country’s internet giants are back on track after a two-year industry crackdown.
Tencent Unit TJ Sports has been holding talks with top Chinese athletes about setting up the competition in recent days, people familiar with the matter said. A tournament could start as soon as summer at the earliest, when Tencent launches the game domestically, one of the people said, asking not to be identified when it comes to private information.
The talks are in the early stages and Tencent could push back its schedule, people said. But one Brave Liga will help restart competitive online gaming in China after a two-year hiatus when pandemic restrictions and Beijing’s crackdown on youth addiction rocked the world’s largest gaming arena.
launched worldwide in 2020, Brave has become one of the most popular eSports titles, vying for a multi-billion dollar market alongside rival shooters like Blizzard over watch. Tencent only received approval to launch the stock in December, which investors took as a sign the government was preparing to loosen its grip on the sector.
Tencent shares extended gains in late Hong Kong trade, rising as much as 1.8 percent before ending broadly unchanged. Brokerage firms, including Morgan Stanley, have been raising their price targets on Tencent in recent weeks and expect growth to recover as restrictions ease and efforts to sell video ads gather momentum.
“These are positive signs that Chinese tech companies are back in business, although regulatory headwinds have largely receded,” said Marvin Chen, an analyst at Bloomberg Intelligence. “It is also consistent with recent comments from policymakers that innovation still occupies a prominent position for national development.”
A Tencent representative said in a message the company is making preparations related to Valorant and has not confirmed a launch date for the game.
A Valorant extravaganza would expand Tencent’s roster of Chinese competitive leagues, which span genres from battle arenas to racing and first-person shooters. Tencent founded TJ Sports with US subsidiary Riot games in 2019 to lead League of Legends competitions. Another entity runs tournaments based on Honor of Kings, Tencent’s long-running mobile cash cow.
Along with the possible eSports celebrations, Valorant will help Tencent bolster a company crippled by tighter scrutiny of online content. growth for the WeChat Operator has all but evaporated since 2021, when regulators began restricting everything from playtime to unwanted content.
In December, the Chinese social media giant secured the green light for a number of major releases, including Valorant and Pokemon Unitefueling hopes that China is easing a two-year crackdown Big Tech. Valorant, in particular, drew attention because Beijing had signaled its disapproval of violent shooting games with perceived Western cultural overtones in the past. Tencent had to replace PUBGfor example with a less bloody alternative called PeaceKeeper Elite, which also came with political slogans.
The company has invested billions of dollars in talent agencies, streaming sites, and tournament organizers to create the infrastructure needed to take pro gaming from a niche to an integral part of its growth strategy.
The League of Legends Pro League in China – operated by TJ – is the world’s largest esports league in terms of partner teams and viewership. The Shanghai-based company has raised around US$150 million (approx. Rs.
Outside of China, Riot itself organizes three international Valorant leagues with a total of 30 teams in places like Los Angeles, Seoul and Berlin.
© 2023 Bloomberg LP
