ByteDance Takes Aim at Tencent's Core Gaming Business
Tencent (OTC: TCEHY) dominates China's social networking and video game markets. Its mobile messaging app WeChat reaches 1.15 billion monthly active users (MAUs), its older QQ messaging platform hosts 731 million MAUs, and it's the world's largest video game publisher by annual revenue.
However, Beijing-based ByteDance, the world's most valuable start-up with a valuation of $75 billion, has become a thorn in Tencent's side in recent years. Its flagship short video app TikTok (known as Douyin in China), which topped 500 million MAUs in 2018, is luring away Gen Z users, who consider WeChat to be an app for their parents. ByteDance's news app Toutiao, which curates "clickbait" content, is also pulling younger and lower-income users away from Tencent News.
Image source: Getty Images.
Source Fool.com
