Tuesday, February 7, 2023
GoldscopeFeed
Advertisement
  • World
  • Business
  • Entertainment
  • Technology
  • Lifestyle
  • Sports
  • Finance
  • Trending
No Result
View All Result
GoldscopeFeed
  • World
  • Business
  • Entertainment
  • Technology
  • Lifestyle
  • Sports
  • Finance
  • Trending
No Result
View All Result
GoldscopeFeed
No Result
View All Result
Home tech

Tencent just got a bit of good news from Chinese regulators on its Sogou deal

by GFeed News Desk
July 13, 2021
0
A $600 million fine has been imposed by France on Google

Tencent has been granted full control of Sogou, a major search engine that could help the company compete with market leader Baidu, according to Chinese regulators.

The approval comes as a relief from Chinese regulators, who have recently been cracking down hard on internet behemoths, stifling the ambitions of some of the country’s most powerful corporations.

The buyout, which will take New York-listed Sogou (SOGO) private, was “unconditionally approved” by China’s State Administration for Market Regulation (SAMR) on Tuesday. Tencent (TCEHY) now owns the entire search firm for $3.5 billion. It is the majority shareholder in the company, with a current stake of about 39%.

“This merger is powerful,” said Edith Yeung, a general partner at Silicon Valley venture capital firm Race Capital and author of the “China Internet Report.”

Tencent, with Sogou under its wing, could eventually become the largest search engine in mainland China, according to Yeung, “if and only if they know how to leverage Tencent’s huge [trove] of data.” Sogou is currently one of China’s most popular search engines, trailing only Baidu, the industry leader (BIDU).

Investors were quick to react to the news. Tencent’s stock rose 3.9 percent in Hong Kong on Tuesday, while Sogou’s stock rose 2.5 percent in New York premarket trading. Other tech stocks benefited from the news as well. The Hang Seng Technology Index in Hong Kong increased by 1.9 percent on Tuesday.

The regulators’ green light comes at a time when China is cracking down on Big Tech, sending markets into a frenzy.

Tencent’s plan to merge two of China’s top video game streaming websites, Douyu (DOYU) and Huya (HUYA), was recently scuttled by regulators (HUYA). Tencent is the largest shareholder in each of these companies.

Tencent’s stock dropped on Monday as a result of the news. Since its January high, the company’s market value has dropped by nearly $261 billion.

The SAMR expressed concerns in a statement released on Saturday that the video game merger would give Tencent too much control over the market. Both companies are listed on the New York Stock Exchange and have a combined market capitalization of $5.1 billion.

Chinese regulators have been cracking down on what they see as anti-competitive behavior within the country for months, but the focus appears to have shifted in recent weeks to companies whose shares trade internationally.

The country’s powerful internet watchdog, the Cyberspace Administration of China, proposed over the weekend that any company with data on more than one million Chinese users must seek the agency’s approval before listing its shares overseas. It proposed that companies submit IPO materials for review to the agency prior to listing.

“[It’s] very tough to say,” she said. “I would take the wait-and-see attitude.”

In the meantime, Halley believes Chinese tech stocks will continue to be under pressure in the near future.

“I believe it is but a temporary reprieve,” he said of Tencent’s approval. “I believe that [Chinese] political risk will continue to act as a discounting price factor on mainland technology stocks going forward.”

Tweet146
Previous Post

Knicks interested in ‘very available’ Collin Sexton in potential NBA Draft trade

Next Post

Zomato is raising $1.3 billion in India’s biggest tech IPO

GFeed News Desk

https://goldcopefeed.com/

Related Posts

Netflix’s new competition – ITVX, it’s a Spotify-style streaming platform

CEO of Netflix Reed Hastings to donate $1 million to Ukraine

by GF Entertainment Desk
March 3, 2022
0

Reed Hastings, the co-founder, chairman, and co-CEO of Netflix, has pledged $1 million to an organisation that provides humanitarian aid...

Netflix’s new competition – ITVX, it’s a Spotify-style streaming platform

Netflix’s new competition – ITVX, it’s a Spotify-style streaming platform

by GF Entertainment Desk
March 3, 2022
0

ITV is ramping up its aims in the already crowded pay-TV business by launching a new Spotify-style streaming network. Users...

A man’s final moments before dying have been recorded by a Study

Getting Credit cards from Banks is becoming easier day by days

by GFeed News Desk
February 23, 2022
0

Credit cards are becoming more accessible today than they were just a few years ago. Nearly two years after the...

A man’s final moments before dying have been recorded by a Study

A man’s final moments before dying have been recorded by a Study

by GFeed News Desk
February 23, 2022
0

The first-ever recording of a dying brain has offered new information on what might happen in our final moments. Scientists...

Australia to open its borders to vaccinated tourists from this month

Google changed Chrome browser’s logo after 8 years!

by GFeed News Desk
February 7, 2022
0

Chrome, which is Google's well-known internet browser, is getting a new logo. According to Google Chrome designer Elvin Hu, the...

Please login to join discussion

Recommended

Channing Tatum and Zoe Kravitz’s zodiac signs equal to perfect compatibility

Channing Tatum and Zoe Kravitz’s zodiac signs equal to perfect compatibility

April 10, 2022
Emma Raducanu vows to ‘come back stronger’ after dream run at Wimbledon ends

Emma Raducanu vows to ‘come back stronger’ after dream run at Wimbledon ends

July 6, 2021

Categories

  • Business
  • Entertainment
  • Fashion
  • Finance
  • Food
  • Health
  • Lifestyle
  • Sports
  • tech
  • Technology
  • Travel
  • Travel
  • Trending
  • Uncategorized
  • US
  • World

Don't miss it

Selena Gomez Launches ‘Your Words Matter’ Mental Health Campaign With Rare Beauty
Entertainment

On Friends, Tom Selleck, who plays Richard, talks about his experience

May 2, 2022
Selena Gomez Launches ‘Your Words Matter’ Mental Health Campaign With Rare Beauty
Entertainment

Selena Gomez Launches ‘Your Words Matter’ Mental Health Campaign With Rare Beauty

May 2, 2022
Everything you need to know about Borgen Season 4
Entertainment

Angelina Jolie went to Ukraine, to meet children and volunteers

May 2, 2022
Everything you need to know about Borgen Season 4
Entertainment

First look of P-Valley Season 2 has been revealed

May 2, 2022
Everything you need to know about Borgen Season 4
Entertainment

With only 5 days till the screening of Doctor Strange 2, Marvel has released a teaser

May 2, 2022
Everything you need to know about Borgen Season 4
Entertainment

Everything you need to know about Borgen Season 4

May 2, 2022
  • About
  • Contact
  • Cookie Policy
  • Editorial Policy
  • Privacy Policy

© GoldscopeFeed 2020-21, All Rights Reserved.

No Result
View All Result
  • About
  • Cookie Policy
  • Privacy Policy
  • Contact

© GoldscopeFeed 2020-21, All Rights Reserved.