China’s Tencent Holdings Ltd is looking to acquire Xiaomi-backed gaming smartphone maker Black Shark, according to a report. bloomberg, The deal will allow Tencent to move forward with its ambitions for the metaverse.
according to a report by bloomberg Citing unnamed sources, Tencent has begun talks to buy Black Shark, which will move towards making virtual reality headsets for the tech giant after the deal.
Black Shark currently manufactures gaming smartphones and accessories. The company already constitutes of big-name investors like Xiaomi Corp.
News about a potential takeover was first reported by a local trade publication. 36Kr,
In a separate report, it is being said that Tencent Games will acquire Black Shark for around 3 billion yuan, which when converted, turns out to be a little over $470 million.
Whereas bloomberg The report claims that Black Shark will focus on virtual reality headsets. Other reports claim that the company will continue to manufacture and sell gaming phones. To recall, Tencent has previously partnered with Asus and Nubia to launch special edition gaming smartphones, and with the help of Black Shark, it won’t need to sign any partnership deals with other smartphone makers.
With Black Shark, Tencent will be able to bring its gaming devices overseas as well, given that Black Shark has already entered some major markets around the world.
Tencent has been quite vocal about its ambition to create a metaverse of its own. In a recent earnings call, Tencent President Martin Lau said the metaverse is “a real opportunity.” However, Lau also said that it may take longer than expected to bring the Metaverse to reality in development.
Specific hardware is a key aspect of the metaverse, and groups like Meta and Tencent know this. Like a leader in the space, Meta bought Oculus in 2014 to manufacture the headset. While another Chinese company ByteDance Ltd. is also looking to capture the market, and last year bought domestic VR headset maker Pico.
After Tencent in talks to acquire Black Shark to help with its Metaverse dream: report first appeared on BGR India.