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Chinese Technology Conglomerate Tencent Holdings Ltd. had reportedly lost more than US$ 180 Billion of market cap since its peak in January making it one of the worst performing tech firm in the Asian market. Tencent market cap was once recorded well above US$ 500 Billion but now has fallen to US$ 320 billion.
Tencent which is a global technology major and has its operations all around the world and WeChat, Epic Games, Tencent games, Tencent pictures are some of its well-known subsidiaries. It is also the sixth largest internet company in the world in terms of revenue.
The company said in a statement that the sudden downfall in company’s market cap is caused due to ongoing restructuring in the Chinese Government. The officials in the Chinese regulatory have caused the delay in obtaining necessary authorizations. The company also said that they have not been able to monetize its gaming services such as Fortnite and PlayerUnknown’s Battleground.
The company also released their quarterly financial report which posted their first-ever drop in profit in at least a decade. The company’s net income fell 2%, as well as their revenue from mobile gaming, went downwards by 19%.
