Tencent, one of the world’s largest gaming businesses, plans to buy Xiaomi’s gaming phone brand, Black Shark. Tencent is purportedly attempting to enter the metaverse with this move.
According to many credible sources, the Chinese gaming giant intends to incorporate Black Shark into its own Content Business Group. When Black Shark joins Tencent, it is expected to experience a business transition as well. Once the transaction is completed, the gaming phone brand is likely to expand.
According to reports, Black Shark’s expansion will include VR-based technology and gadgets. Tencent is anticipated to provide the VR software, while Black Shark will provide the hardware.
For those unfamiliar, Black Shark is a new firm that was launched in 2019 as a Xiaomi sub-brand. Xiaomi currently holds a 46.4 percent stake in the company, making it the biggest shareholder. Xiaomi and Tencent have yet to issue a formal statement on the transaction.
Several IT companies have entered the AR/VR market since the launch of the metaverse, and it was only a matter of time until Tencent followed suit. It seems natural that the Chinese gaming company would seek out the knowledge of a seasoned tech behemoth and combine it with its own software skills.
As soon as either party issues a formal statement, we will update this area.