As per a latest report, Tencent Group plans to acquire the Black Shark brand and integrate it into its own Content Business Group. The company’s decision comes as it seems to be preparing to enter the Metaverse.
According to 36Kr and numerous independent sources, the Chinese tech behemoth is interested in acquiring the gaming smartphone manufacturer.
It goes on to say that after the acquisition process is completed, the gaming smartphone maker would undergo a business transformation. To put it another way, after the transaction is completed, Black Shark as a brand will almost likely expand.
This process of diversification will allegedly expanded to include VR (Virtual Reality) technology and devices. Tencent will offer the software content for VR, while Black Shark will produce the hardware.
For those who are unfamiliar with the gaming smartphone brand, it was founded in 2017 and is supported by Xiaomi, another Chinese tech behemoth.
Xiaomi is now the major shareholder of Black Shark, with a 46.4 percent stake. Tencent has yet to provide an official statement about these news.
However, with so many IT businesses going into the AR/VR space, especially after the advent of the Metaverse, it was only a matter of time until the Chinese corporation followed suit.
The brand has even applied for a number of trademarks for Metaverse technology in Q3 2021.
While the corporation has yet to confirm the storey, it makes logical that the company would look for an experienced brand with its own R&D and production resources to establish a platform for accessing its content.
However, with so many tech companies moving entering the AR/VR space, especially after the advent of the Metaverse, it was just a matter of time until the Chinese company followed suit. The brand has even applied for a number of trademarks for Metaverse technologies in Q3 2021.
Whereas the company has yet to confirm the news, it makes reasonable that the company would look for an experienced brand with its own R&D and manufacturing facilities to establish a platform for accessing its content.
This is also not a new development, since Facebook already acquired Oculus to cover a hardware gap in its aspirations to deliver both VR content and the devices that allow users to enter the VR world.
According to another source, Tencent was in contact with all AR/VR-related projects on the market, including HTC. However, considering that the company is renowned for a variety of very well gaming titles, the selection of Black Shark isn’t surprising.
Both firms have previously collaborated on gaming cellphones from the latter.