Tencent Holdings에 대한 매도 수량은 투자자에게 Tencent Holdings의 주식 하락에 베팅하는 정도를 알려줍니다. 매도 수량 데이터는 2주마다 업데이트됩니다.

Tencent Holdings (OTC:TCEHY) 주식, 공매도 수량 보고

Tencent Holdings

TENCENT HOLDINGS ADR

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app. WeChat is deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading companies including PDD, Kuaishou, and Epic Games.

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텐센트 홀딩스(OTC:TCEHY), CATL(Contemporary Amperex Technology Co. Limited) 등 중국의 대표적인 기술 기업 두 곳이 수요일(8일) 미국 국방부의 중국 군사기업 목록에 추가된 후 법적 대응을 준비하고 있다.

美 국방부 블랙리스트에 오른 테슬라 공급업체 CATL와 텐센트, 중국군 관련성 부인하며 법적 대응 준비

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일론 머스크가 소셜미디어 플랫폼 엑스(X)에 “X머니”라는 새로운 비트코인(CRYPTO: BTC) 및 암호화폐 기능을 도입할 준비를 하고 있다는 보도가 나왔다.

암호화폐 기반 &#39;만능 앱&#39;을 위한 일론 머스크의 노력, &#39;X머니&#39;에 반영

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비디오 게임 산업은 화려한 그래픽을 위한 높은 예산이 지속적인 재정적 수익을 창출하지 못하고 있는 상황에 직면하고 있다. 월트 디즈니(NYSE:DIS)의 마블의 스파이더맨 2와 같은 타이틀은 소니 그룹(NYSE:SONY)의 플레이스테이션 5에서 현대 게임의 기술력을 증명하지만, 증가하는 비용이 매출을 초과하기 시작했다고 뉴욕타임스가 보도했다.

게임 산업의 딜레마 - 그래픽, 예산 그리고 플레이어 수요의 균형 잡기

TENCENT HLDGS UNSP/ADR by Tencent Holding Ltd.

Tencent Holdings Ltd

Tencent Holdings Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and Contemporary Amperex Technology Co. Limited, two of China&#8217;s leading technology companies, are preparing legal challenges after being added to the U.S. Department of Defense&#8217;s list of Chinese Military Companies on Wednesday.
What Happened: The designation, which primarily affects U.S. defense procurement, triggered significant market reactions. Tencent&#8217;s shares fell 7.8% in Hong Kong trading on Tuesday, while CATL&#8217;s stock dropped 6% in Shenzhen. Both companies strongly denied any military connections and announced plans to engage with U.S. authorities.
Tencent, a major gaming and social media conglomerate, stated in a regulatory filing that it is &#8220;neither a Chinese military company nor a military-civil fusion contributor.&#8221; The company, led by Chairman Ma Huateng, emphasized that the listing wouldn&#8217;t affect its broader business operations or securities trading.
Tencent owns Riot Games, and Supercell, and has stakes in Reddit, Snap, and Epic Games.
CATL, a key supplier to Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), similarly rejected the designation, stating it has &#8220;never engaged in any military-related business or activities.&#8221; The company assured shareholders that the listing would not substantially impact its operations.
Both Tencent and CATL have initiated reconsideration processes and indicated their willingness to pursue legal action if necessary.
See Also: <a href="https://www.benzinga.com/25/01/42860759/10-best-stock-traders-in-congress-in-2024-where-do-nancy-pelosi-pete-sessions-susan-collins-marjorie-taylor-greene-rank">Top 10 Stock Traders In Congress For 2024: How Nancy Pelosi, Pete Sessions, Susan Collins, Marjorie Taylor Greene Rank</a>
Why It Matters: This development comes amid escalating <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">U.S.-China trade tensions</a>. China&#8217;s Ministry of Commerce recently imposed new trade controls, adding 28 U.S. companies to an export control list and restricting major defense contractors like Lockheed Martin Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Boeing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) from operating in China.
Despite these challenges, Tencent continues to show <a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/42827152/tencent-strengthens-video-leadership-showcases-revenue-growth-potential-analyst">strong business fundamentals</a>. Goldman Sachs recently maintained a Buy rating on the company, citing its leadership in video entertainment and artificial intelligence development. The company&#8217;s WeChat ecosystem remains robust, with users accessing the app 40-50 times daily.
The Pentagon&#8217;s designation specifically relates to <a href="https://www.benzinga.com/news/global/25/01/42838053/us-adds-tencent-tesla-supplier-catl-to-chinese-military-blacklist-shares-tumble">Section 1260H list compliance</a>, which serves as a warning mechanism for U.S. entities but does not prohibit general business dealings or securities transactions with listed companies. 
Price Action: Tencent&#8217;s stock is trading at HK$ 373.60 ($48.04) on Wednesday, down 1.58% for the day. Over the past year, the stock has gained 29.51%. 
CATL&#8217;s stock is currently trading at CNY 246.28 ($33.59) on Wednesday, down 1.27% for the day. Over the past year, the stock has surged 64.09%.
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Image Via Shutterstock 
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Tesla Supplier CATL, Riot Games Owner Tencent Plan Legal Action Over Pentagon Blacklist, Deny Military Ties

The U.S. Department of Defense, on Monday, added several Chinese firms, including Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) supplier Contemporary Amperex Technology Co. Limited (CATL), Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), to its list of companies allegedly supporting Beijing's military efforts, causing a sharp decline in their stock values.
What Happened: The U.S. Department of Defense expanded its &#8220;Section 1260H list&#8221; to include Tencent Holdings and CATL, citing their alleged contributions to China&#8217;s military advancements. This move serves as a warning to U.S. entities regarding the potential risks of engaging with these firms.
Following the announcement, Tencent&#8217;s shares dropped by 7.8% in Hong Kong, while CATL&#8217;s stock saw a 6% decline in Shenzhen. Both companies denied any involvement with China&#8217;s military and expressed their intent to cooperate with U.S. authorities to rectify the situation.
See Also:&nbsp;<a href="https://www.benzinga.com/news/24/05/39036025/second-trump-term-could-lead-to-confrontational-relationship-between-china-us-says-expert-likely-exp?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Second Trump Term Could Lead To ‘Confrontational Relationship' Between China, US, Says Expert: ‘Likely Experience A New Round Of Large-Scale Decline&#8217;</a>
Why It Matters: The U.S. blacklisting of Tencent and CATL comes amid heightened trade tensions, with both nations targeting each other's key industries. On Thursday, China's Ministry of Commerce <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">imposed new trade controls</a>, adding 28 U.S. companies to an export control list and banning the export of dual-use items that serve both military and civilian purposes. Major U.S. defense contractors, including Lockheed Martin (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LMT#NYSE">LMT</a>) and Boeing (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>), were also placed on China's Unreliable Entity List, prohibiting their operations in China and restricting executives from entering the country.
This back-and-forth escalation highlights the growing challenges faced by global businesses navigating geopolitical uncertainties. Experts, like Andrew Gilholm of Control Risks, note that while many sanctions are symbolic, the expanding scope and frequency of these actions signal a more aggressive stance from both nations. Additionally, Chinese firms are responding to U.S. restrictions by <a href="https://www.benzinga.com/government/24/05/39057312/chinese-firms-blacklisted-in-us-rebrand-themselves-as-american-to-avoid-sanctions-imposed-by-biden-a">rebranding and establishing</a> U.S.-based entities to sidestep sanctions, further complicating regulatory landscapes.
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Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors
Image by katjen via Shutterstock

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US Adds Tencent, Tesla Supplier CATL To 'Chinese Military' Blacklist, Shares Tumble

Goldman Sachs analyst Ronald Keung maintained a Buy rating on Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and a <a href="https://www.benzinga.com/quote/TCEHY/analyst-ratings" target="_blank" rel="noreferrer noopener">price target of</a> 542 Hong Kong dollars ($69.70 U.S. dollars).
Keung attended the Tencent Video All-Star Night alongside investor meetings held in Macau on Jan. 4, 2025, hosted by Tencent&#8217;s Chief Strategy Officer James Mitchell, Tencent Video CEO Sun Zhonghuai, China Literature CEO Hou Xiaonan and the Investor Relations team.
The analyst flagged platform leadership over the years on the back of patience and balanced execution and transformation mindsets, demonstrated by a consistent track record of surpassing its competitors and subsequently becoming the industry leader across multiple internet domains (Tencent Video, Tencent Pay, Tencent Games) leveraging effective deployment of resources.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42770035/bank-of-america-citigroup-exit-climate-alliance-as-trump-policies-shift-energy-priorities" rel="noreferrer noopener">Bank of America, Citigroup Exit Climate Alliance As Trump Policies Shift Energy Priorities</a>
Keung highlighted the company&#8217;s focus on critical resources and multi-strategies for exploring AI opportunities. With critical resources such as the company&#8217;s hypercomputing cluster (HPC) and increasingly sophisticated data, the company noted it had narrowed the gap with domestic and global peers and is on track to explore generative AI opportunities, including to-C applications, given its unique, highly engaging WeChat ecosystem, with users opening the Weixin app 40-50 times a day.
The analyst flagged Tencent Video&#8217;s help in solidifying the company&#8217;s leadership in online video entertainment driven by art and technology. He noted Tencent Video is gradually entering a period of high-quality content creation with healthy profitability through focusing resources on slates, improving the membership mix, taking anti-pirating measures by limiting the number of devices per account, and continuing operating expenditure discipline.
Keung highlighted China Literature as a key catalyst for the company. The three-stage development of IP enables Tencent to monetize its key IPs emerging from online literature by adapting them into multiple entertainment formats, including games, drama, animation, and merchandise sales, and gradually expand overseas in the long term.
Keung came out of the event remaining confident in Tencent&#8217;s extended runway of revenue growth and compounding the potential for earnings, with Tencent&#8217;s unique WeChat ecosystem and global gaming and content assets with multiple emerging monetization levers across video account, e-commerce (with MiniShops and its recent launch of the Weixin gifting function), Weixin search, wealth management and enterprise software, that should enable the company to deliver compounding of earnings growth through volatile macrocycles.&nbsp;&nbsp;
Tencent is trading at 15 times 2025E P/E (12 times ex-portfolio), with a consistent shareholder return policy where it surpassed its 2024 annual buyback target with 112 billion Hong Kong dollars ($14,403,760,000 U.S. dollars) worth of shares repurchased versus a target of over 100 billion Hong Kong dollars ($12,860,330,000 U.S. dollars), which reduced its total share count to the lowest level in the past 10 years.
TCEHY Price Action: Tencent Holdings stock is down 8.18% at $48.82 at publication Monday.
Also Read:
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<li><a href="https://www.benzinga.com/government/regulations/25/01/42767647/chinese-stocks-drop-as-manufacturing-growth-slows-and-geopolitical-tensions-hit" target="_blank" rel="noreferrer noopener">Chinese Stocks Drop As Manufacturing Growth Slows And Geopolitical Tensions Hit</a></li>
</ul>
Photo: katjen via Shutterstock

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Tencent Strengthens Video Leadership, Showcases Revenue Growth Potential: Analyst

Pentagon Federal Register Has Added Chinese Firms Tencent, CATL, Autel, Changxin Memory Technologies, Quectel Wireless To U.S. List Of Firms Alleged To Help Beijing's Military

Elon Musk is reportedly gearing up to introduce a new Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and cryptocurrency feature called "X Money" on his rebranded platform, X, formerly Twitter.
What Happened: According to a leak reported by influencer Alex Finn and MacRumors contributing researcher Aaron Perris on Friday, "X Money" might launch without needing approval from all 50 states.
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">&#x1f6a8;BREAKING: X PAYMENTS LAUNCHING IMMINENTLY New X code has just shipped that reveals X Payments will launch WITHOUT approval from all 50 states Meaning X Payments could launch TODAY Creators could start earning WAY MORE money immediately States it will be available: 1.… <a href="https://t.co/8Wej1XrIQK">pic.twitter.com/8Wej1XrIQK</a>
&mdash; Alex Finn (@AlexFinnX) <a href="https://twitter.com/AlexFinnX/status/1874916936032870834?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
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<blockquote class="twitter-tweet" data-width="500" data-dnt="true">It seems like X plans to launch X money in the US before getting approval in all 50 states <a href="https://t.co/M8QBHf3U6S">pic.twitter.com/M8QBHf3U6S</a>
&mdash; Aaron (@aaronp613) <a href="https://twitter.com/aaronp613/status/1874898592181436658?ref_src=twsrc%5Etfw">January 2, 2025</a></blockquote>
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See Also: <a href="https://www.benzinga.com/25/01/42780776/is-apple-ready-for-a-new-challenge-chinas-smartphone-subsidies-aim-to-boost-domestic-demand-giving-companies-like-huawei-the-upper-hand?itm_source=parsely-api">Apple Rival Huawei, Alibaba And Others Get Boost As China Doles Out Subsidies To Smartphone Buyers</a>
X CEO Linda Yaccarino said earlier this week that payments, including &#8216;X Money,&#8217; will be <a href="https://www.benzinga.com/general/education/25/01/42794433/if-you-invested-1000-in-dogecoin-when-elon-musk-acquired-twitter-heres-how-much-youd-have-now">integrated into the platform</a> in 2025. The idea behind it is to transform X into an &#8220;everything app&#8221; similar to Tencent Holdings Limited&#8217;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) WeChat.
X payments' support for cryptocurrency could potentially trigger a bitcoin price surge similar to PayPal Holdings Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>) 2021 crypto support, <a href="https://www.forbes.com/sites/digital-assets/2025/01/05/x-money-leak-reveals-elon-musks-game-changing-plan-as-bitcoin-nears-100000-price/">noted</a> Forbes.
Bitcoin&#8217;s value currently hovers around the $100,000 mark. The apex cryptocurrency touched an all-time high of $108,268.45 on Dec. 17, 2024. 
Why It Matters: The potential launch of &#8216;X Money&#8217; comes amid a series of events that have kept Musk in the crypto spotlight.
Last month, <a href="https://www.benzinga.com/24/12/42739155/elon-musk-changes-his-name-to-kekius-maximus-on-x-sending-to-memecoin-skyrocketing-over-600">Musk changed his name</a> on X to &#8220;Kekius Maximus,&#8221; causing a similarly-named meme coin, Kekius Maximus (KEKIUS), to skyrocket over 600% in value. However, KEKIUS<a href="https://www.benzinga.com/markets/cryptocurrency/25/01/42758291/elon-musks-return-to-original-x-avatar-causes-coin-themed-on-kekius-maximus-to-crash-90-frog-themed-pepe-slips-as-well"> crashed by 90%</a> when Musk reverted to his original avatar in January.
Musk&#8217;s influence in the crypto market also became evident when an adult-themed meme <a href="https://www.benzinga.com/25/01/42780378/elon-musks-x-post-now-sends-this-adult-themed-crypto-up-175">coin surged 175% after he</a> referenced it in a post on X.
While Musk has not directly commented on Bitcoin recently, his support for Donald Trump in the upcoming U.S. presidential election has been linked to rising Bitcoin prices.
His role as an influential advisor to the President-elect has also fueled speculation about the creation of a <a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42378618/musk-fuels-speculation-on-us-bitcoin-reserve-as-crypto-surges">U.S. Bitcoin strategic reserve</a>.
Price Action: Bitcoin is currently priced at $98,247, reflecting a 0.17% increase over the past 24 hours. Its trading volume has risen by 2.45%, reaching $21.52 billion, according to <a href="https://pro.benzinga.com/dashboard">data from Benzinga Pro</a>.
Photo Courtesy: Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Elon Musk's Push For Crypto-Powered 'Everything App' Reflected In 'X Money' Leak As Bitcoin Hovers Around $100K

In 2024, Chinese stocks finally rebounded from challenges like the pandemic, property market struggles, and weak consumer confidence, ditching a three-year losing streak despite a slight dip on the <a href="https://www.benzinga.com/topic/china">final trading day. </a>
The CSI 300, which tracks major companies in Shanghai and Shenzhen, climbed 14.7% last year, while the Shanghai Composite Index gained 12.8%.
In Hong Kong, the Hang Seng Index jumped 17.7% for the year, clocking its first annual gain in five years. Analysts at Value Partners, as reported by Reuters, attributed the rally to stronger-than-expected policy support from Chinese authorities, including interest rate cuts, property incentives, and funding programs to boost stock buying.
Banking stocks stood out as top performers in China, increasing 34.7%, with the biggest state banks soaring to multi-year highs. The chip sector&#8217;s growth is also worth mentioning, moving 53.9% northward as investors leaned into domestic semiconductor firms amid U.S. restrictions.
Interestingly, according to Reuters, strategists suggest that the market is nearing the end of &#8220;policy expectation-driven&#8221; trading, with optimism about continued dividends in 2025 despite potential disruptions from U.S. political changes. 
Also, taking into consideration what China President Xi Jinping said in his annual new year&#8217;s eve speech, China's GDP is likely to grow <a href="https://www.bloomberg.com/news/articles/2024-12-31/xi-says-china-s-2024-gdp-growth-expected-to-be-around-5?srnd=homepage-asia" target="_blank" rel="noreferrer noopener">around 5%</a> in 2024, meaning it is set to meet its official target. Jinping also mentioned continued economic support measures and more proactive macroeconomic policies for 2025.
Now that we have briefly examined what China&#8217;s future holds, let&#8217;s look at how some Chinese stock-focused ETFs are poised to perform.
See Also: <a href="https://www.benzinga.com/news/global/25/01/42772220/us-global-launches-technology-and-aerospace-defense-etf-why-its-allocation-makes-sense">US Global Launches Technology And Aerospace &amp; Defense ETF: Why Its Allocation Makes Sense</a>
Franklin FTSE China ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLCH#NYSE">FLCH</a>) is an underdog among China-focused ETFs, with $145.27 million in assets under management. According to Franklin Templeton, FLCH "provides access to the Chinese stock market, allowing investors to precisely gain exposure to China at a low cost," with targeted exposure to large- and mid-sized companies in China. 
The low 0.19% expense ratio is a relief for investors outside China, as investing in Chinese stocks is expensive. Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) holds the biggest piece of the holdings pie, with 14.38% allocation, followed by Alibaba Group Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>). The fund has generated 15.03% returns in 2024.
iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) has around $5.4 billion in AUM, a much bigger ETF than FLCH in volume, with an expense ratio of 0.59%. Despite the expense ratio being on the higher side, the fund has grown 21.11% in 2024, reflecting positive demand among investors. Coincidentally, this ETF also allocates the biggest chunk of its holdings (16.59%) to Tencent, and the second largest piece (8.13%) to Alibaba.
iShares China Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXI#NYSE">FXI</a>), as the name suggests, focuses on Chinese blue-chip stocks, and has an AUM of $7.1 billion. The high-end expense ratio of 0.74% did not deter investors from rushing into the fund, pushing the price up by 23.31% through 2024. The fund provides exposure to 50 of the largest Chinese stocks in a single portfolio, offering broad coverage of major companies.
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Photo: Shutterstock

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BABA

FLCH

MCHI

Chinese Stocks Rebound In 2024 After 3-Year Slump: 3 ETFs To Watch

Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) slashed its <a target="_blank" href="https://in.benzinga.com/topic/llm" rel="noreferrer noopener">large language model</a> prices by up to 85%, exhibiting intense domestic rivalry in the AI space.
Chinese companies remain engaged in a price war to win market share, prompting Alibaba Cloud to initiate discounts on its visual language model, Qwen-VL, CNBC <a target="_blank" href="https://www.cnbc.com/2024/12/31/alibaba-baba-cloud-unit-slashes-prices-on-ai-models-by-up-to-85percent.html" rel="noreferrer noopener">cites</a> from Alibaba&#8217;s WeChat post on Tuesday.
In February, the Chinese e-commerce juggernaut&nbsp;announced up to 55% discounts on its core cloud products.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/12/42729529/social-media-stocks-react-as-trump-targets-censorship-and-delays-tiktok-ban" rel="noreferrer noopener">Trump Administration to Challenge Social Media Censorship, Setting Stage for Conflict with EU Regulations</a>
Jack Ma&#8217;s co-founded company slashed its Qwen AI model&nbsp;prices by up to 97% in May. Qwen-VL can interpret both texts and images.
Chinese tech firms, including Alibaba,&nbsp;Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>),&nbsp;Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>),&nbsp;and JD.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JD#NASDAQ">JD</a>), launched their large language models.
In the third quarter, <a target="_blank" href="https://www.benzinga.com/news/24/11/41785553/alibabas-ai-strategy-massive-ad-spend-to-dominate-crowded-market" rel="noreferrer noopener">Chinese companies spent</a> 500 million yuan ($70.2 million) on promotional campaigns for AI applications. Alibaba committed 200 million yuan to promote the Quark cloud storage and search platform.
Alibaba remains focused on LLM efforts in the enterprise segment rather than launching a consumer AI chatbot like OpenAI&#8217;s ChatGPT. Alibaba Cloud Intelligence Group revenue grew by 7% to $4.22 billion <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/42006281/alibaba-q2-earnings-revenue-beats-forecast-cloud-and-international-sales-shine-free-cash-flow-falls-amid-strategic-investments" rel="noreferrer noopener">in the second quarter</a>.
Alibaba, Tencent, and&nbsp;Baidu disbursed $7 billion on AI infrastructure and processors in the first half of 2024.
Meanwhile, Wedbush&#8217;s Dan Ives&nbsp;expects the U.S. Big Techs, including Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), to spend $1 trillion&nbsp;on AI capital expenditure.
Alibaba Group Holding stock surged over 13% in the last 12 months. Investors can gain exposure to the stock through Invesco Golden Dragon China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PGJ#NASDAQ">PGJ</a>) and First Trust Nasdaq Artificial Intelligence and Robotics ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROBT#NASDAQ">ROBT</a>).
Price Action: BABA stock traded lower by 1.04% at $83.91 premarket at the last check on Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/24/12/42725756/xiaomi-evs-to-access-charging-networks-of-nio-xpeng-and-li-auto" target="_blank" rel="noreferrer noopener">Xiaomi Expands EV Charging Options, Partners with NIO, XPeng, and Li Auto for Greater Network Access</a></li>
</ul>
Photo by Ascannio via Shutterstock

AMZN

BIDU

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Alibaba Leverages Scale and Deep Pockets to Slash AI LLM Prices To Gain Market Share

The <a target="_blank" href="https://www.benzinga.com/topic/video-games" rel="noreferrer noopener">video game industry</a> is grappling with high budgets for outlandish graphics that fail to generate consistent financial returns.
Titles like Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Marvel&#8217;s Spider-Man 2 on the Sony Group Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) PlayStation 5 bear testimony to the technical prowess of modern gaming, but the escalating costs have begun to outpace revenues, the New York Times <a target="_blank" href="https://www.nytimes.com/2024/12/26/arts/video-games-graphics-budgets.html" rel="noreferrer noopener">reports</a>.
Developers are now questioning the viability of this approach as industry layoffs and closures mount.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40687996/microsofts-ai-pcs-stumble-with-game-compatibility-report" rel="noreferrer noopener">Microsoft&#8217;s AI PCs Stumble With Game Compatibility: Report</a>
After its Activision Blizzard acquisition, Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) laid off <a target="_blank" href="https://www.benzinga.com/general/gaming/24/09/40859756/activision-blizzard-mobile-games-face-cuts-after-microsofts-latest-round-of-layoffs-what-went-wron" rel="noreferrer noopener">almost 2,550 employees</a> in its gaming unit.
In October, Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) closed its AAA game studio, Team Blue, less than a year <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41462659/netflix-ends-aaa-game-development-at-california-studio" rel="noreferrer noopener">after its formation</a>. In August, Ubisoft Entertainment&nbsp;SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) <a target="_blank" href="https://www.benzinga.com/general/gaming/24/08/40445836/ubisoft-cuts-45-more-jobs-in-latest-round-of-us-studio-layoffs" rel="noreferrer noopener">fired 45 employees</a> from its San Francisco studio and Red Storm Entertainment in Cary, North Carolina.
Ubisoft is reportedly in talks with Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) about a buyout <a target="_blank" href="https://www.benzinga.com/general/gaming/24/12/42372040/ubisoft-stock-jumps-14-after-reports-of-tencent-buyout" rel="noreferrer noopener">after grappling with</a> disappointing sales and studio closures. Meanwhile, Tencent denied speculation surrounding a 30% layoff at <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41609208/tencent-shuts-down-layoff-rumors-while-announcing-major-leadership-shake-up" rel="noreferrer noopener">its LightSpeed Studios</a>.
Despite selling over 11 million copies, &#8220;Spider-Man 2&#8221; exemplifies the challenges of creating cinematic games, which require enormous investments. Gaming studio closure&nbsp;and&nbsp;layoffs&nbsp;have claimed over 20,000 jobs in the past two years.
The New York Times <a target="_blank" href="https://www.nytimes.com/2024/12/26/arts/video-games-graphics-budgets.html" rel="noreferrer noopener">reports</a> that Insomniac Games spent $300 million to develop the sequel, more than triple the budget of its predecessor. Yet, Sony, the game&#8217;s publisher, still laid off 900 employees in 2024.
New York University professor and market analyst Joost van Dreunen and Jacob Navok, a former gaming executive, told the NYT the younger generation&#8217;s preference for accessible titles like Minecraft and Roblox Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RBLX#NYSE">RBLX</a>). These titles prioritize interaction over graphics, starkly contrasting the costly cinematic experiences of blockbuster franchises.
High-fidelity games like the remastered version of The Last of Us: Part II face steep development costs that often outweigh their financial returns.
Meanwhile, live-service games like Genshin Impact generate billions annually by focusing on mobile-friendly content and consistent updates, but this model carries risks.
Warner Bros. Discovery Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>) lost $200 million on &#8220;Suicide Squad: Kill the Justice League,&#8221; highlighting the challenges of live-service game investments.
Also Read:
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<li><a href="https://www.benzinga.com/24/11/42161830/sony-eyes-portable-gaming-market-with-new-handheld-console-in-development" target="_blank" rel="noreferrer noopener">Sony Eyes Portable Gaming Market With New Handheld Console In Development</a></li>
</ul>
Image by Sundry Photography via Shutterstock

Gaming Conundrum - Balancing Graphics, Budgets, and Player Demand

In a significant move to bolster the domestic semiconductor industry, the U.S. Commerce Department has approved a $406 million grant for Taiwan's&nbsp;GlobalWafers. This funding is aimed at enhancing silicon wafer <a target="_blank" href="https://www.benzinga.com/tech/24/12/42525551/ahead-of-trumps-return-to-white-house-us-approves-406m-grant-for-taiwans-chipmaker-globalwafers" rel="noreferrer noopener">production within the United States</a>.
Senate minority leader&nbsp;Mitch McConnell&nbsp;(R-Ky.) submitted an amicus brief to the Supreme Court, urging the rejection of&nbsp;TikTok's&nbsp;request to delay <a target="_blank" href="https://www.benzinga.com/24/12/42568430/senate-minority-leader-mcconnell-urges-supreme-court-to-reject-tiktoks-delay-request-pushing-for-january-ban-amid-first-amendment-debate" rel="noreferrer noopener">a law that could ban the app in January</a>.
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>)&nbsp;is reportedly gearing up to launch a redesigned&nbsp;AirTag&nbsp;in 2025 with better <a target="_blank" href="https://www.benzinga.com/media/24/12/42501665/apples-2025-airtag-to-feature-iphone-15s-ultrawide-band-chip-for-smarter-longer-range-tracking-report" rel="noreferrer noopener">tracking capabilities and range</a>.
Apple is reportedly planning to launch foldable iPhones <a target="_blank" href="https://www.benzinga.com/media/24/12/42500942/apple-eyes-2026-to-launch-foldable-iphones-and-ultralight-devices-as-it-looks-to-revitalize-sales-momentum-report" rel="noreferrer noopener">and ultralight devices by 2026</a>.
Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42513402/apples-2025-bull-case-can-it-deliver-without-riding-the-ai-wave" rel="noreferrer noopener">Apple&#8217;s 2025 Bull Case: Can It Deliver Without Riding The AI Wave?</a>
New leaks have emerged, offering a glimpse into the design of the upcoming&nbsp;Samsung Electronics Co.&#8217;s<a target="_blank" href="https://www.benzinga.com/24/12/42545936/samsung-galaxy-s25-ultra-and-s25-leaks-show-off-sleek-curved-design-and-slimmer-bezels-than-apples-iphone-16-pro-max" rel="noreferrer noopener">&nbsp;</a>(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) <a target="_blank" href="https://www.benzinga.com/24/12/42545936/samsung-galaxy-s25-ultra-and-s25-leaks-show-off-sleek-curved-design-and-slimmer-bezels-than-apples-iphone-16-pro-max" rel="noreferrer noopener">Galaxy S25 Ultra</a><a target="_blank" href="https://www.benzinga.com/24/12/42545936/samsung-galaxy-s25-ultra-and-s25-leaks-show-off-sleek-curved-design-and-slimmer-bezels-than-apples-iphone-16-pro-max" rel="noreferrer noopener">&nbsp;and&nbsp;</a><a target="_blank" href="https://www.benzinga.com/24/12/42545936/samsung-galaxy-s25-ultra-and-s25-leaks-show-off-sleek-curved-design-and-slimmer-bezels-than-apples-iphone-16-pro-max" rel="noreferrer noopener">S25+</a>.
Apple and&nbsp;NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;have announced a collaboration for the improvement in the <a target="_blank" href="https://www.benzinga.com/24/12/42568204/nvidia-and-apple-team-up-to-supercharge-llms-with-redrafter-technique" rel="noreferrer noopener">performance of large language models</a>.
Apple has slammed&nbsp;Meta Platforms, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) for its numerous requests to access iPhone-maker's software tools, <a target="_blank" href="https://www.benzinga.com/media/24/12/42569325/apple-slams-metas-interoperability-demands-cites-privacy-risks-instagram-parent-fires-back-cupertinos-assertions-have-no-basis-in-reality" rel="noreferrer noopener">citing potential privacy and security risks</a>.
Apple is reportedly engaging in discussions with&nbsp;Tencent&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and TikTok's parent company,&nbsp;ByteDance, to integrate their <a target="_blank" href="https://www.benzinga.com/news/24/12/42569744/apple-reportedly-in-talks-with-tencent-tiktok-parent-bytedance-to-roll-out-ai-features-in-china" rel="noreferrer noopener">AI&nbsp;models into iPhones sold in&nbsp;China</a>.
Technology &amp; Social Media
Microsoft Corp.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) has reportedly acquired nearly twice as many&nbsp;Nvidia AI chips as its closest competitors. This strategic investment is aimed at bolstering its AI capabilities,<a target="_blank" href="https://www.benzinga.com/tech/24/12/42547442/microsof-scoops-up-485000-nvidia-ai-chips-twice-as-many-as-its-closest-rival-meta-report" rel="noreferrer noopener"> particularly for its Azure cloud services</a>.
Meta&nbsp;unveiled much-anticipated updates to its&nbsp;Ray-Ban&nbsp;smart glasses. It rolled out three new features for its Ray-Ban smart glasses:<a target="_blank" href="https://www.benzinga.com/24/12/42524192/metas-ray-ban-smart-glasses-can-now-be-your-chef-linguist-and-dj-whats-next-therapist" rel="noreferrer noopener"> live AI, live translations, and&nbsp;</a><a target="_blank" href="https://www.benzinga.com/24/12/42524192/metas-ray-ban-smart-glasses-can-now-be-your-chef-linguist-and-dj-whats-next-therapist" rel="noreferrer noopener">Shazam</a>.&nbsp;
Meta&#8217;s CEO&nbsp;Mark Zuckerberg&nbsp;said that&nbsp;Instagram&#8217;s Threads&nbsp;has reached a milestone <a target="_blank" href="https://www.benzinga.com/general/social-media/24/12/42525426/threads-reaches-100-million-daily-active-users-as-meta-capitalizes-on-exodus-from-elon-musks-x-to-alternative-platforms" rel="noreferrer noopener">of 100 million daily active users</a>.
Instagram&nbsp;head&nbsp;Adam Mosseri&nbsp;raised concerns about the growing challenge of distinguishing between real and AI-generated <a target="_blank" href="https://www.benzinga.com/24/12/42501178/meta-warns-ai-generated-content-can-be-a-threat-as-instagram-boss-suggests-always-considering-who-it-is-that-is-speaking" rel="noreferrer noopener">images on social media platforms</a>.
Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/24/12/42509206/soundhound-ai-soars-over-700-short-squeeze-potential-has-traders-talking" rel="noreferrer noopener">SoundHound AI Soars Over 700%: Short Squeeze Potential Has Traders Talking</a>
On Monday, President-elect&nbsp;Donald Trump&nbsp;reportedly met with TikTok CEO&nbsp;Shou Zi Chew&nbsp;at Mar-a-Lago, Florida, as the company seeks intervention from the U.S. <a target="_blank" href="https://www.benzinga.com/general/social-media/24/12/42522134/trump-meets-tiktok-ceo-shou-zi-chew-at-mar-a-lago-as-platform-urges-supreme-court-to-block-looming-ban" rel="noreferrer noopener">Supreme Court to prevent a looming ban</a>.
Read: <a target="_blank" href="https://www.benzinga.com/tech/24/12/42525899/elon-musk-reacts-after-sundar-pichai-shares-veo-2-as-google-looks-to-challenge-openais-sora-in-ai-video-race-looks-impressive" rel="noreferrer noopener">Elon Musk Reacts After Sundar Pichai Shares Veo 2 As Google Looks To Challenge OpenAI&#8217;s Sora In AI Video Race: &#8216;Looks Impressive&#8217;</a>
PDD Holdings‘&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) Temu app has once again secured the top position as the most downloaded free app on Apple's U.S. iOS store, marking its second <a target="_blank" href="https://www.benzinga.com/tech/24/12/42527567/pdds-temu-tops-ios-downloads-in-us-while-trump-wants-to-impose-100-tariffs-on-chinese-imports" rel="noreferrer noopener">consecutive year at the summit</a>.
Microsoft CEO&nbsp;Satya Nadella&nbsp;shared insights about the transformative impact of AI throughout 2024, <a target="_blank" href="https://www.benzinga.com/24/12/42546621/elon-musk-agrees-as-satya-nadella-reflects-on-ais-global-impact-in-2024-from-cancer-research-to-rainforest-conservation-and-more" rel="noreferrer noopener">with which&nbsp;</a><a target="_blank" href="https://www.benzinga.com/24/12/42546621/elon-musk-agrees-as-satya-nadella-reflects-on-ais-global-impact-in-2024-from-cancer-research-to-rainforest-conservation-and-more" rel="noreferrer noopener">Elon Musk</a><a target="_blank" href="https://www.benzinga.com/24/12/42546621/elon-musk-agrees-as-satya-nadella-reflects-on-ais-global-impact-in-2024-from-cancer-research-to-rainforest-conservation-and-more" rel="noreferrer noopener">&nbsp;agrees</a>.
Elon Musk&nbsp;has once again expressed his disapproval of hashtags on&nbsp;X, formerly&nbsp;Twitter, describing <a target="_blank" href="https://www.benzinga.com/general/social-media/24/12/42547615/elon-musk-reiterates-hashtags-are-ugly-and-useless-on-x-even-though-ceo-linda-yaccarino-tried-to-make-them-trendy-again" rel="noreferrer noopener">them as "ugly" and redundant</a>.
Artificial Intelligence (AI)
Marc Andreessen&nbsp;has lauded&nbsp;OpenAI's Sora&nbsp;video model, suggesting it may have resolved a<a target="_blank" href="https://www.benzinga.com/tech/24/12/42501018/marc-andreessen-praises-openais-sora-video-model-we-may-have-basically-just-solved-the-fundamental-challenge-of-robotics" rel="noreferrer noopener"> significant challenge in robotics</a>.
OpenAI&nbsp;announced that it is extending the&nbsp;ChatGPT Search&nbsp;engine to all users, including those on the free tier. The AI search engine was initially <a target="_blank" href="https://www.benzinga.com/tech/24/12/42523020/chatgpt-search-goes-free-openai-challenges-googles-unbroken-search-dominance" rel="noreferrer noopener">launched for paid subscribers in October</a>.
Mondelez International&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>) has been leveraging AI to speed up recipe development<a target="_blank" href="https://www.benzinga.com/24/12/42545590/oreo-ai-cookie-magic-how-mondelez-is-using-tech-to-whip-up-snack-perfection" rel="noreferrer noopener"> and improve flavor profiles</a>.
Grammarly Inc.&#8217;s acquisition of Coda has received a thumbs-up&nbsp;from&nbsp;LinkedIn&nbsp;co-founder&nbsp;Reid Hoffman.&nbsp;The writing assistant company will now be led <a target="_blank" href="https://www.benzinga.com/tech/24/12/42546973/grammarly-acquires-coda-linkedin-co-founder-reid-hoffman-applauds-move" rel="noreferrer noopener">by the new CEO,&nbsp;</a><a target="_blank" href="https://www.benzinga.com/tech/24/12/42546973/grammarly-acquires-coda-linkedin-co-founder-reid-hoffman-applauds-move" rel="noreferrer noopener">Shishir Mehrotra</a>.
OpenAI&nbsp;has unveiled a new feature that lets users call&nbsp;ChatGPT&nbsp;for free, offering a 15-minute call per month through the <a target="_blank" href="https://www.benzinga.com/24/12/42569479/openai-takes-a-page-from-googles-2007-playbook-by-turning-phones-into-an-ai-hotline-with-toll-free-number-1-800-chatgpt" rel="noreferrer noopener">toll-free number&nbsp;</a><a target="_blank" href="https://www.benzinga.com/24/12/42569479/openai-takes-a-page-from-googles-2007-playbook-by-turning-phones-into-an-ai-hotline-with-toll-free-number-1-800-chatgpt" rel="noreferrer noopener">1-800-CHATGPT</a>.
Read: <a target="_blank" href="https://www.benzinga.com/24/12/42553029/apples-iphone-16-stumbles-on-intelligence-awareness-but-pro-max-shines-bright-says-analyst" rel="noreferrer noopener">Apple&#8217;s iPhone 16 Stumbles On &#8216;Intelligence&#8217; Awareness, But Pro Max Shines Bright: Analyst</a>
Perplexity AI, backed by&nbsp;Amazon.com Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) founder&nbsp;Jeff Bezos,&nbsp;secured $500 million in funding&nbsp;led by Institutional Venture Partners, <a target="_blank" href="https://www.benzinga.com/tech/24/12/42570376/jeff-bezos-backed-perplexity-raises-500-million-tripling-its-valuation-to-9-billion-as-competition-with-google-and-openai-heats-up" rel="noreferrer noopener">tripling its valuation to $9 billion</a>.

AAPL

MDLZ

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Citigourp Global Markets 2% Protected Notes Linked To The Djia

SSNLF

Instagram Concerned About Challenge In Distinguishing Real And AI-Generated Images, Apple To Launch Foldable iPhone By 2026 & More: Consumer Tech News (December 16-20)

Apple Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is reportedly engaging in discussions with&nbsp;Tencent&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) and TikTok&#8217;s parent company,&nbsp;ByteDance, to integrate their AI&nbsp;models into iPhones sold in&nbsp;China.
What Happened: The U.S. tech giant began incorporating OpenAI&#8217;s ChatGPT into its devices earlier this month. However, due to regulatory constraints in China, Apple is seeking local partners to enhance AI features on its devices. The&nbsp;discussions with Tencent and ByteDance&nbsp;are reportedly in preliminary stages, sources indicated, Reuters reported on Thursday.
Apple&#8217;s move comes&nbsp;as it faces declining market&nbsp;share in China, the world&#8217;s largest smartphone market.&nbsp;The absence of AI capabilities&nbsp;in its latest iPhones has been a significant drawback, especially with increasing competition from domestic brands like Huawei.
Apple, Tencent and ByteDance have yet to respond to <a href="http://pro.benzinga.com">Benzinga&#8217;s</a> queries.
See Also:&nbsp;<a href="https://www.benzinga.com/tech/24/12/42525551/ahead-of-trumps-return-to-white-house-us-approves-406m-grant-for-taiwans-chipmaker-globalwafers?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Ahead Of Trump&#8217;s Return To White House, US Approves $406M Grant For Taiwan&#8217;s Chipmaker GlobalWafers</a>
Why It Matters: The potential collaboration with Tencent and ByteDance is critical for Apple as it navigates the competitive Chinese market. In recent months, Apple has faced challenges in China, including a <a href="https://www.benzinga.com/markets/equities/24/08/40125039/apple-cracks-down-on-tencent-and-bytedance-over-30-app-store-fees-threatens-to-reject-essential-">crackdown on app store fees</a>. In August, Apple intensified efforts to compel Tencent and ByteDance to close loopholes that allowed in-app creators to bypass Apple&#8217;s 30% commission. 
Moreover, Apple&#8217;s AI ambitions have been met with skepticism. In October, an analyst suggested that <a href="https://www.benzinga.com/news/24/10/41420086/apple-intelligences-meh-moment-ahead-analyst-predicts-5-months-of-build-up-could-lead-to-a-thats-it">Apple&#8217;s much-anticipated AI system,</a> Apple Intelligence, might not meet high expectations. This underscores the importance of Apple&#8217;s current talks with Chinese tech giants to bolster its AI capabilities.
In November,&nbsp;Tim Cook&nbsp;expressed optimism about Apple&#8217;s performance in China, <a href="https://www.benzinga.com/news/24/11/41677388/tim-cook-underscores-several-positive-signs-in-apples-china-performance-refrains-from-talking-about">highlighting positive signs</a> despite economic challenges. However, he refrained from commenting on the potential impact of economic stimulus. This context emphasizes the strategic importance of Apple&#8217;s AI integration efforts in maintaining its market position in China.
Read Next:&nbsp;
<ul>
<li><a href="https://www.benzinga.com/tech/24/12/42499609/micron-gets-investment-from-white-house-china-launches-antitrust-investigation-on-nvidia-apple-faces-1-2-billion-lawsuit-in-california-more-consumer-tech-news-december-9-13?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Micron Gets Investment From White House, China Launches Antitrust Investigation On Nvidia, Apple Faces $1.2 Billion Lawsuit In California &amp; More: Consumer Tech News (December 9-13)</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

Apple Reportedly In Talks With Tencent, TikTok-Parent ByteDance To Roll Out AI Features In China

<h2 class="wp-block-heading">New On The Block</h2>
Dental supply maker Patterson Companies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDCO#NASDAQ">PDCO</a>) announced Thursday that it is exploring strategic options, including a sale or merger, to boost shareholder value. The company disclosed the deal process as part of its <a href="https://www.benzinga.com/24/12/42342667/dental-supplies-patterson-companies-evaluates-strategic-alternatives-after-mixed-q2-earnings-amid-challenging-end-market-environment">second-quarter financial report</a>.
<h2 class="wp-block-heading">Updates From The Block</h2>
EasyHotel is close to being sold. A billionaire-backed firm called London &amp; Regional Properties is bidding against a fund managed by Tristan Capital Partners. The auction process is in its final stages, according to <a href="https://www.bloomberg.com/news/articles/2024-11-27/billionaire-brothers-private-equity-chase-deal-for-easyhotel">Bloomberg</a>.
Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) is in talks with Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) <a href="https://www.benzinga.com/general/gaming/24/12/42372040/ubisoft-stock-jumps-14-after-reports-of-tencent-buyout">over a potential buyout</a>. According to Reuters, the deal would allow Ubisoft&#8217;s founders, the Guillemot family, to retain control if the company goes private. This development follows a <a href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft">difficult year for Ubisoft</a>, marked by staff layoffs, disappointing sales, and the closure of several studios. Ubisoft&#8217;s stock jumped 14% after news of the buyout discussions emerged, as per <a href="https://pro.benzinga.com/dashboard">Benzinga Pro.</a>
Lightspeed Commerce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LSPD#NYSE">LSPD</a>) is reorganizing. A majority of the restructuring charges will be incurred in the third quarter of fiscal 2025. The focus remains on &#8220;reducing the complexity of our business,&#8221; said Lightspeed founder and CEO Dax Dasilva <a href="https://investors.lightspeedhq.com/English/newsroom/news-details/2024/Lightspeed-Commerce-Announces-Strategic-Reorganization-Continues-to-Optimize-for-Profitable-Growth/default.aspx">said</a>. An analyst told <a href="https://www.paymentsdive.com/news/lightspeed-strategic-reorganization-employee-impact/734300/">Payments Dive</a> that the intent is to set Lightspeed up for a sale. JPMorgan and RBC are advising the process, according to <a href="https://www.bloomberg.com/news/articles/2024-11-07/lightspeed-looks-for-efficiencies-as-strategic-review-continues">Bloomberg</a>.
See Also: <a href="https://www.benzinga.com/general/space/24/12/42376708/nasa-mission-to-land-humans-on-moon-delayed-artemis-3-now-slated-for-mid-2027">NASA Mission To Land Humans On Moon Delayed &#8211; Artemis 3 Now Slated For&#8230;</a>
<h2 class="wp-block-heading">Off The Block</h2>
Novavax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) agreed to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk A/S (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NVO#NYSE">NVO</a>) <a href="https://www.benzinga.com/pressreleases/24/12/n42308359/novavax-announces-sale-of-czech-republic-manufacturing-site-to-novo-nordisk-for-200-million" target="_blank" rel="noreferrer noopener">for $200 million</a>. The deal includes transferring assets, including a 150,000-square-foot factory <a href="https://www.benzinga.com/24/12/42323263/wegovy-maker-novo-nordisk-to-buy-novavaxs-czech-republic-manufacturing-facility-for-200-million">and the existing workforce</a>.
Schneider National, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNDR#NYSE">SNDR</a>) disclosed that it has agreed to acquire Cowan Systems, LLC and its affiliates for approximately $390 <a href="https://www.benzinga.com/pressreleases/24/11/b42167845/schneiders-dedicated-momentum-continues-to-build-with-latest-acquisition-of-cowan-systems-llc" target="_blank" rel="noreferrer noopener">million in cash, subject to adjustments</a>. The deal also includes a separate purchase of related real estate <a href="https://www.benzinga.com/news/mid-cap/24/11/42170700/schneider-expands-its-fleet-390-million-cowan-systems-deal-supercharges-dedicated-services">assets for $31 million</a>.
Renewi, a London-listed waste management company, <a href="https://www.macquarie.com/assets/macq/about/company/macquarie-asset-management/project-earth/joint-statement-regarding-a-final-possible-cash-offer-for-renewi-by-macquarie.pdf">agreed</a> to a preliminary takeover offer from Macquarie Asset Management that values it at 700.9 million pounds ($888.8 million). Renewi had been exploring the sale of certain assets (i.e. its <a href="https://www.globenewswire.com/news-release/2024/10/10/2961009/0/en/Completion-of-divestment-of-UK-Municipal-operations.html">UK Municipal division</a>) in order to reduce debt and focus on its core recycling business in the Netherlands, Belgium, France and Portugal.
<h2 class="wp-block-heading">Bankruptcy Block</h2>
Eegee's, a beloved drive-through restaurant chain founded in Tucson in 1971, has filed for Chapter 11 bankruptcy and closed five locations—four in Tucson and one in Phoenix. Despite challenges, Eegee's continues to operate over 20 locations in Tucson and Phoenix. Local media <a href="https://www.kold.com/2024/12/06/eegees-closes-five-restaurants-files-bankruptcy/">reported</a> that the company owes significant debts, including over $1.2 million to Sysco and hundreds of thousands more to other vendors, with total liabilities ranging between $10 million and $50 million. CEO Chris Westcott cited various pressures as reasons for the restructuring, but local residents blamed 39 North Capital, Eegee's owner since 2018.
Trucking company Kal Freight filed for bankruptcy protection, saying its financial condition has been hurt by unprofitable efforts to become a vertically integrated business and a now-questionable investment in additional vehicles during the height of the Covid-19 pandemic. The closely held company also faces litigation, including foreclosure actions, according to the <a href="https://www.wsj.com/articles/trucker-kal-freight-files-for-bankruptcy-protection-06194094">Wall Street Journal</a> citing a filing Thursday in the U.S. Bankruptcy Court in Houston.
Proma Group has <a href="https://www.promagroup.com/archive/news/68">acquired</a> Germany&#8217;s Recaro Automotive GmbH, enabling the company to exit bankruptcy and resume operations across Europe starting January 2025. Recaro's aftermarket seats will return to the market in January, with OEM production shifting to Italy where Proma is based. Several employees from Recaro&#8217;s Sales and Technology departments will remain in the Stuttgart area to ensure a smooth transition and customer support. Recaro&#8217;s operations in North America and Japan remain unaffected. Proma Group CEO Luca Pino praised the partnership as a blend of German industrial and Italian manufacturing excellence.
<h2 class="wp-block-heading">Notes From The Block</h2>
Bain &amp; Company did a swell job putting M&amp;A telecom trends into perspective this week. Here&#8217;s what we learned: 
<ul>
<li>Global deal value &#8220;surged&#8221; from about $24 billion in the first three quarters of 2023 to $90 billion in the same period in 2024, the firm noted. The Americas accounted for 63% of the global total.</li>
<li>Financial investors are acquiring tower and fixed assets. This trend underscores confidence in digital infrastructure's business fundamentals despite headwinds.</li>
<li><a href="https://www.benzinga.com/markets/equities/24/09/40727235/verizon-to-acquire-frontier-in-20b-deal-reaffirms-fy24-outlook">The $20.3 billion deal between</a> Frontier Communications Parent, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) and Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) is the year's largest transaction so far.</li>
<li>Scale deals accounted for nearly half of global deal value year to date; infrastructure divestments accounted for 22% of deal value through the first nine months of 2024 (36% of all deal value over the past five years); mobile and fixed divestments made up about 20% during that period. For the full report, <a href="https://www.bain.com/insights/telecom-m-and-a-here-are-the-latest-deal-trends-worldwide-interactive/">click here</a>.</li>
</ul>
For last week&#8217;s <a href="https://www.benzinga.com/news/asset-sales/24/11/42254293/deal-dispatch-stoli-bankrupt-ally-financial-to-sell-credit-card-unit">Deal Dispatch, click here</a>.
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<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/12/42370712/bitcoins-flash-crash-is-a-classic-bull-market-shakeout-says-trader-watch-these-3-scenarios">Bitcoin Flash Crash: Classic Bull Market Shakeout?</a></li>
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AMPS

BLCO

BTBT

FYBR

LBPH

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USAP

Deal Dispatch: Ubisoft In Buyout Talks, Dental Supplier Explores Sale, Beloved Drive-Through Goes Bankrupt

Ubisoft Entertainment SA (OTC:<a class="ticker" href="https://www.benzinga.com/stock/UBSFF#OTC">UBSFF</a>) is in talks with Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) over a potential buyout.
According to Reuters, the deal would allow Ubisoft&#8217;s founders, the Guillemot family, to retain control if the company goes private.
This development follows a <a href="https://www.benzinga.com/general/gaming/24/09/40801168/ubisoft-is-mismanaged-shareholders-are-hostages-investor-demands-video-game-company-go-private-aft">difficult year for Ubisoft</a>, marked by staff layoffs, disappointing sales, and the closure of several studios. Ubisoft&#8217;s stock jumped 14% after news of the buyout discussions emerged, as per <a href="https://pro.benzinga.com/dashboard">BZPro.</a>
See Also: <a href="https://www.benzinga.com/24/12/42366954/neteases-marvel-rivals-launches-with-444000-players-on-steam">NetEase&#8217;s Marvel Rivals Launches With 444,000 Players On Steam</a>
<h3 class="wp-block-heading">Privatization Could Mean Big Changes For Ubisoft</h3>
Sources have told Reuters that Ubisoft is exploring a deal that would allow it to buy back shares from public shareholders, essentially taking the company off the stock market. 
While the Guillemot family wants to maintain control, Tencent's <a href="https://www.benzinga.com/general/24/10/41356456/tencent-may-join-forces-for-ubisoft-bid">significant stake in the company</a> means it will likely demand a larger say in future business decisions.
&#8220;We remain committed to making decisions in the best interests of all of our stakeholders,&#8221; a spokesperson for Ubisoft told Eurogamer. &#8220;In this context, as we have already indicated, the Company is also reviewing all its strategic options.&#8221;
<h3 class="wp-block-heading">Struggling With Financial Losses</h3>
The buyout discussions come amid tough financial times for Ubisoft. The company has faced layoffs, staff walkouts, and a series of underperforming game releases. <a href="https://www.benzinga.com/general/gaming/24/09/40717689/star-wars-outlaws-sales-slump-ubisoft-shares-hit-near-10-year-low">Star Wars Outlaws sold below expectations</a>, and Assassin&#8217;s Creed Shadows, one of Ubisoft's flagship titles, has been delayed until February 2025.
Earlier this week, Ubisoft announced it would close several studios, cutting 277 jobs, while <a href="https://www.benzinga.com/24/12/42320697/277-jobs-cut-as-ubisoft-ends-xdefiant-development">pulling the plug on the live-service shooter XDefiant. </a>
<h3 class="wp-block-heading">Tencent's Growing Influence</h3>
Tencent, already the second-largest shareholder of Ubisoft, has been increasingly active in the gaming industry, having acquired stakes in major companies such as Epic Games and <a href="https://www.benzinga.com/general/social-media/24/12/42275520/riot-games-expands-creator-rules-off-platform-misconduct-faces-penalties">Riot Games. </a>
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/12/42305217/gamers-now-watch-more-than-they-play-how-publishers-can-reclaim-lost-revenue-report">Gamers Now Watch More Than They Play — How Publishers Can Reclaim Lost Revenue: Report</a></li>
</ul>
Image made with photos from Shutterstock.

Gaming

Ubisoft Stock Jumps 14% After Reports Of Tencent Buyout

The <a href="https://www.benzinga.com/topic/esports">global esports market</a> is poised for explosive growth, with a recent report from Arizton Advisory &amp; Intelligence projecting it will exceed $5 billion by 2029, fueled by a compound annual growth rate (CAGR) of 17.48%. 
To put this in perspective, industries like American football and global music show significantly lower CAGRs of 6.9% and 7.8%, respectively, the <a href="https://www.arizton.com/market-reports/global-esports-market">report</a> says.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42249576/target-black-friday-deals-pokemon-shoppers-gotta-catch-em-all">Target Black Friday Deals: Pokémon Shoppers Gotta Catch &#8216;Em All</a>
However, regulatory complexities, emerging technologies, and strategic market shifts are shaping the industry&#8217;s future. In dialogue with Benzinga, Arizton&#8217;s Associate Consultant, Abhiyank Verma, shared insights into the challenges and opportunities ahead for esports investors and stakeholders.
<h3 class="wp-block-heading">Navigating The Challenges Of The Esports Industry</h3>
&#8220;Regulatory uncertainties remain a major challenge for esports companies,&#8221; said Verma. He added that governance frameworks vary across regions, creating a fragmented landscape.
"For instance, South Korea leads the way with structured governance through the Korea Esports Association (KeSPA), ensuring fairness and player welfare," Verma shared. 
On the other hand, regions like North America and Southeast Asia rely on fragmented or industry-driven policies, making it difficult to manage player rights and advertising regulations.
Other regions face their own hurdles. "Saudi Arabia enforces strict content controls under Vision 2030, and China imposes tight restrictions on gaming time and content," Verma noted, adding that these measures complicate global operations. 
<h3 class="wp-block-heading">Emerging Technologies Shaping The Future Of Esports</h3>
The adoption of cutting-edge technologies like Augmented Reality (AR) and Virtual Reality (VR) is revolutionizing the esports experience. 
As Verma puts it, "AR enhances real-world environments by overlaying digital elements, enriching gameplay with real-time visuals and data."
VR, on the other hand, transports players to fully virtual worlds, providing &#8220;unparalleled inmmersion.&#8221; Together, these technologies are unlocking new possibilities, from mixed-reality tournaments to enhanced spectator experiences.
The <a href="https://www.benzinga.com/topic/arvr">global impact of AR and VR </a>is already evident. For instance, in the U.S., initiatives like Golden Gloves VR are blending fitness with competitive gaming, while Canada's Dark Slope advances VR-based experiences. The United ArabE is leveraging these innovations to bolster its economy, with Dubai's VR Park projected to add $4.1 billion by 2030. Meanwhile, China's Meta-Tencent partnership showcases the growing role of immersive technology in competitive gaming.
"These technologies are driving trends that expand audiences and unlock economic opportunities," Verma emphasized, underscoring their transformative potential for the esports ecosystem.
<h3 class="wp-block-heading">Advice For Investors Eyeing Esports Growth</h3>
For investors looking to tap into this booming market, Verma stressed the importance of diversification, strategic partnerships, and emerging markets.
<ul>
<li>Revenue Diversification: "Traditional revenue sources such as sponsorships and tournament winnings remain vital," Verma explained, but esports organizations are branching out. He pointed to in-game purchases, virtual goods, subscription services, and digital collectibles as emerging revenue streams that cater to fans&#8217; demand for exclusive content.</li>
<li>Strategic Partnerships: Collaborations with game developers and streaming platforms are essential. "Partnerships with companies like Tencent Holdings ADR&#8216;s (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) Riot Games, Blizzard, and Microsoft Corp.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) Activision ensure a steady supply of new titles and competitive events," said Verma. Streaming platforms like Twitch, Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) YouTube, and Meta Platforms Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) Facebook Gaming also play a critical role in expanding esports' reach and community engagement.</li>
<li>Emerging Markets: Regions like Southeast Asia, India, and the Middle East are experiencing rapid growth due to improved internet infrastructure and smartphone adoption. "With the rise of fan engagement technologies, including VR, AR, and interactive live-streaming, esports organizations are creating new ways for fans to interact with content." </li>
</ul>
Read Next:
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<li><a href="https://www.benzinga.com/24/11/42249737/antitrust-lawsuit-against-steam-expands-to-include-all-developers-since-2017">Antitrust Lawsuit Against Steam Expands To Include All Developers Since 2017</a></li>
</ul>
Photo by <a href="https://unsplash.com/es/@florianolv?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Florian Olivo</a> on <a href="https://unsplash.com/es/fotos/persona-sentada-en-una-silla-de-juego-mientras-juega-a-un-videojuego-Mf23RF8xArY?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a>.

GOOGL

Esports Market Set To Surpass $5 Billion By 2029: What Investors Need To Know

Larian Studios, the developer of Baldur's Gate 3, achieved significant financial success in 2023, as revealed by newly published records from its Dublin-based holding <a href="https://www.benzinga.com/general/gaming">company. </a>
The studio reported a pre-tax profit of 249 million euros (approximately $260.9 million) and total revenue of 427 million euros, largely driven by the release of Baldur's Gate 3 in August.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42121273/baldurs-gate-3-sees-more-players-in-2024-than-during-launch-year-heres-why">Baldur&#8217;s Gate 3 Sees More Players In 2024 Than During Launch Year: Here&#8217;s Why</a>
This marks a substantial turnaround from Larian's 2022 financial performance, which saw 22.7 million euros in revenue and a loss of 214,000 euros. The success of Baldur's Gate 3 has not only bolstered the studio's financial standing but also established the game as a major player in the RPG market.
<h1 class="wp-block-heading">Sales and Licensing Revenue</h1>
Although Larian did not disclose exact sales figures for the game, a <a href="https://www.independent.ie/business/irish/dublin-firm-behind-baldurs-gate-game-posts-249m-profit-after-runaway-success/a2033961431.html">report</a> from the Irish Independent estimates it sold around 15 million copies by the end of 2023.
This aligns with earlier statements from publishing director Michael Douse, who noted sales exceeding 10 million. Additionally, Hasbro Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HAS#NASDAQ">HAS</a>), the parent company of Dungeons &amp; Dragons owner Wizards of the Coast, confirmed the game generated $90 million in licensing revenue.
The game's popularity continued into 2024, with Douse reporting a 20% increase in daily active users compared to the previous year, supported by ongoing interest in community-created mods.
<h1 class="wp-block-heading">Future Plans and Ownership</h1>
Larian CEO Swen Vincke pointed out the studio's strengthened position in a September<a href="https://www.ign.com/articles/baldurs-gate-3-one-year-later-larian-interview"> interview</a> with IGN, stating that Larian is now able to "pick our own destiny and our own path." Rather than developing DLC or a sequel for Baldur's Gate 3, the company plans to focus on new original projects.
Despite Vincke's majority ownership of Larian's ordinary shares, the Irish Independent reported that Chinese tech company Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) holds a significant share of preference stock through its Tencent Cloud Europe division.
<h1 class="wp-block-heading">Global Development and Growth</h1>
Larian employed a "follow the sun" development approach for Baldur's Gate 3, utilizing its network of studios across cities such as Dublin, Ghent, Kuala Lumpur and Quebec to maintain round-the-clock production. This method, combined with the game's success, has elevated Larian's profile within the industry.
While Larian has a history of well-regarded titles, such as Divinity: Original Sin, the success of Baldur's Gate 3 represents a new level of commercial achievement for the studio.
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/11/42144628/gta-6-trailer-2-fans-frustrated-as-rockstar-possibly-breaks-moon-theory">GTA 6 Trailer 2 Fans Frustrated As Rockstar Possibly Breaks Moon Theory</a></li>
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Photo: Shutterstock.

How Baldur's Gate 3 Turned Larian Studios Into A $447 Million Powerhouse

Baldur&#8217;s Gate 3 is showing no signs of slowing down, with more players jumping into the<a href="https://www.benzinga.com/general/gaming"> game than ever. </a>
According to Michael Douse, Larian Studios' director of publishing, the game's average daily peak concurrent players are up 3% compared to last year, while average daily active users have increased by 20%.
See Also: <a href="https://www.benzinga.com/general/gaming/24/11/42093704/starfield-reaches-15-million-players-with-updates-new-content">Starfield Reaches 15 Million Players With Updates, New Content</a>
"If you zoom out on our sales chart, it looks like the heartbeat of a happy little guy," Douse shared on social media platform X.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">I am also happy to announce we have achieved 1 (one) more sale in The Holy See, the Vatican itself. Thank you Mr Pope and enjoy the game.
&mdash; Very AFK (@Cromwelp) <a href="https://twitter.com/Cromwelp/status/1858534543206347137?ref_src=twsrc%5Etfw">November 18, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
<h3 class="wp-block-heading">Modding Fuels The Game's Continued Success</h3>
Part of the game's staying power is its modding community. Since Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) backed Larian added official mod support with Patch 7, fans have downloaded over 50 million mods. Some mods have even brought humor to the table, with 10,000 downloads dedicated to renaming Withers, the game's undead NPC, to "Bone Daddy."
Douse described the mods as "very good," reflecting how they continue to attract and engage players. Larian's CEO, Swen Vincke, previously called mod support a way for players to take over and expand the game's world.
<h3 class="wp-block-heading">What's Next For Larian Studios</h3>
While Baldur's Gate 3 remains a hit, Larian is already working on its next projects. The studio <a href="https://www.benzinga.com/general/gaming/24/03/37882963/sad-news-for-baldurs-gate-3-fans-larian-studios-ends-downloadable-content-sequel-plans-moves-beyon">briefly considered Baldur's Gate 4 </a>but decided to explore something new. 
<a href="https://www.benzinga.com/general/gaming/24/05/38938485/larian-studios-creator-of-baldurs-gate-3-launches-seventh-studio-for-very-ambitious-rpgs">Two games are currently in development</a>, both based on original ideas. Larian has teased these as the studio's "best work ever," though details remain secret for now.
Read Next:
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<li><a href="https://www.benzinga.com/general/gaming/24/11/42068231/sony-in-talks-to-acquire-elden-ring-publisher-kadokawa-report">Sony In Talks To Acquire Elden Ring Publisher Kadokawa: Report</a></li>
</ul>
Image courtesy: Larian Studios.

Baldur's Gate 3 Sees More Players In 2024 Than During Launch Year: Here's Why

Chinese gaming giant Tencent Holding Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) reported fiscal third-quarter 2024 results Wednesday.
Revenue grew 8% year-on-year to $23.9 billion (CNY 167.19 billion), quashing the <a target="_blank" href="https://www.prnewswire.com/apac/news-releases/tencent-announces-2024-third-quarter-results-302303956.html" rel="noreferrer noopener">analyst consensus estimate of $23.4 billion</a>.
Combined, the MAU of Weixin and WeChat grew by 3% year-on-year&nbsp;to 1.38 billion. Mobile device MAU of QQ grew 0.7% year-on-year&nbsp;to 562 million.
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/41907519/sea-ltd-q3-earnings-e-commerce-leads-growth-shopee-on-track-to-hit-gmv-guidance" rel="noreferrer noopener">Sea Q3 Earnings: E-Commerce Leads Growth, Shopee On Track To Hit GMV Guidance, Stock Soars</a>
Fee-based VAS registered subscriptions grew 9% year-on-year&nbsp;to 265 million.
Revenues from VAS increased by 9% Y/Y to&nbsp;CNY82.7 billion. International Games revenues were&nbsp;CNY14.5 billion, up 9% Y/Y, due to robust performances from games including PUBG MOBILE&nbsp;and Brawl Stars. Domestic Games revenues increased by 14% Y/Y to&nbsp;CNY37.3 billion, driven by games including VALORANT, Honour of Kings, Peacekeeper Elite, and DnF Mobile.
Social Networks revenues rose by 4% Y/Y to&nbsp;CNY30.9 billion, supported by growth in app-based game virtual item sales, music subscription revenues and Mini Games platform service fees.
Revenues from Marketing Services were CNY30.0 billion, up 17% Y/Y, driven by robust advertiser demand for Video Accounts, Mini Programs, and Weixin Search inventories. Revenues from FinTech and Business Services rose by 2% Y/Y to CNY53.1 billion.
Gross profit climbed 16% Y/Y to $12.7 billion. The margin expanded by 400 bps to 53%. Adjusted operating profit increased 19% Y/Y to $8.7 billion. The margin grew 400 bps to 37%.
Adjusted net income attributable to equity holders increased 33% Y/Y to $8.5 billion. Adjusted EPS of $0.89 beat the $0.88 <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">analyst consensus estimate</a>.
As of September 30, 2024, Tencent had $60.7 billion in cash and equivalents and generated $8.3 billion in free cash flow.
Tencent&#8217;s Chairman and CEO, Ma Huateng, highlighted strong third-quarter revenue growth, driven by the consistent global performance of established games and contributions from promising new titles. He noted the company&#8217;s enhanced eCommerce approach around Mini Shops, aiming for a seamless and reliable transaction experience across the entire Weixin ecosystem. He also emphasized the growing advantages of AI integration across Tencent&#8217;s products and operations, including marketing services and the cloud. The company plans to continue investing in AI technologies and solutions to benefit users and partners.
Price Action: TCEHY stock closed lower by 2.78% at $51.04 Tuesday.
Photo via Shutterstock
Also Read:
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</ul>

Earnings

Tencent Q3 Earnings: Gaming And AI Fuel Profit Growth, Pony Ma Eyes E-Commerce Expansion

Tencent Holdings Q3 Adj EPS $0.89 Beats $0.88 Estimate, Sales $23.90B Beat $23.38B Estimate

Earnings Misses

Tencent Holdings Q3 2024 Adj. EPS RMB6.34, Inline, Sales RMB167.200B Miss RMB167.855B Estimate

Chinese artificial intelligence (AI) companies, including tech giants Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>) and ByteDance, are investing heavily in advertising to gain a foothold in the competitive AI market.
In the third quarter alone, these companies spent over 500 million yuan ($70.2 million) on promotional campaigns for various AI applications, SCMP <a target="_blank" href="https://www.scmp.com/tech/big-tech/article/3285132/chinese-ai-firms-are-splurging-ads-report-finds-chatbot-market-gets-crowded" rel="noreferrer noopener">reports</a>.
Among the big spenders, Alibaba allocated nearly 200 million yuan to promote Quark, a cloud storage and online search platform enhanced with generative AI features.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41755579/fidelity-national-information-services-banking-capital-markets-growth-drive-optimis" rel="noreferrer noopener">Fidelity National Information Services' Banking, Capital Markets Growth Drive Optimism, Analysts Say</a>
Spending on its ChatGPT-like service, Tongyi Qianwen, was notably lower at 4.5 million yuan. A Tongyi Qianwen spokesperson disputed this figure, SCMP says.
The significant marketing budgets have sparked concerns within China about the sustainability of such high spending.
Chinese AI startup Moonshot AI, backed by Alibaba and Tencent Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>), is among the top ad spenders, with approximately 150 million yuan devoted to promoting its chatbot.
The company's substantial ad budget reflects the increasingly crowded AI market, where hundreds of chatbots are vying for user attention. However, a source close to Moonshot told the SCMP that AppGrowing's data on the company's ad spending is exaggerated.
Yan Junjie, CEO of Shanghai-based AI firm MiniMax, highlighted a fundamental difference in strategy between Chinese and U.S. AI companies.
While American companies rely on product capabilities to attract users, Chinese companies heavily invest in online marketing to differentiate their offerings.
Chinese tech giants Alibaba, Tencent, and Baidu Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) spent $7 billion on AI-focused infrastructure and processors in the first half of this year, a significant rise from last year.
Despite increased spending, China's AI capital investments lag behind U.S. firms like Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which <a target="_blank" href="https://www.benzinga.com/news/24/08/40550305/nvidia-tech-fuels-chinese-ai-growth-overseas-alibaba-ramps-up-7b-investment" rel="noreferrer noopener">spent $106 billion</a>. Wedbush analyst Dan Ives <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41151741/nvidias-ai-leadership-to-drive-1-trillion-market-growth-with-accenture-partnership-" rel="noreferrer noopener">projected $1 trillion</a> in AI capital spending by U.S. tech giants, with Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) a key beneficiary.
Price Action: BABA stock traded lower by 2.93% at $96.31 at the last check on Wednesday.
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</ul>
Photo courtesy: Shutterstock

Emerging Markets

GOOG

Alibaba's AI Strategy: Massive Ad Spend to Dominate Crowded Market

The United States has announced a ban on investments in China's semiconductor and AI sectors, potentially affecting Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41599095/team-bidens-ban-on-china-tech-investments-could-impact-teslas-ai-plans-report" rel="noreferrer noopener">and its operations in the region</a>.
The&nbsp;Video Game History Foundation&nbsp;(VGHF) and the&nbsp;Software Preservation Network&nbsp;faced a major setback in their ongoing campaign to preserve and grant research access to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41583968/us-copyright-office-blocks-game-preservation-bid-thousands-of-classic-titles-critically-endangered" rel="noreferrer noopener">out-of-print&nbsp;video games</a>.
With the U.S. 2024 presidential election just days away, Vice President&nbsp;Kamala Harris&nbsp;is making a unique play to connect with gamers—an audience often <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41587554/kamala-harris-connects-with-gamers-via-fortnite-in-final-campaign-countdown" rel="noreferrer noopener">sidelined in&nbsp;political campaigns</a>.
Earnings
Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) reported third-quarter revenue of $88.27 billion, up 15% year-over-year, beating the Street consensus estimate of $86.31 billion. EPS of $2.12 exceeded the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41611263/alphabet-q3-earnings-highlights-revenue-beat-eps-beat-google-cloud-up-35-momentum-across-the-compan" rel="noreferrer noopener">Street consensus estimate of $1.84</a>.
Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>) reported third-quarter revenue of $1.373 billion, beating the&nbsp;consensus estimate&nbsp;of $1.358 billion. Adjusted EPS of 8 cents per share, beating analyst<a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41612544/snap-q3-earnings-revenue-beat-eps-beat-500m-buyback-ai-update-and-more" rel="noreferrer noopener"> estimates of 5 cents per share</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41618021/snap-touts-new-ad-formats-and-simple-snapchat-10m-users-trial-growth-driving-feature" rel="noreferrer noopener">Snap Touts New Ad Formats And &#8216;Simple Snapchat&#8217; — 10M Users Trial Growth-Driving Feature</a>
Gaming
Call of Duty: Black Ops 6&nbsp;has set a new franchise record for the biggest release ever, with sales on PlayStation and Steam jumping 60 percent compared to <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41662426/black-ops-6-shatters-records-call-of-dutys-biggest-launch-drives-60-sales-spike" rel="noreferrer noopener">last year&#8217;s&nbsp;Modern Warfare III</a>.
Tencent Holdings ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TCEHY#OTC">TCEHY</a>) officially denied rumors of layoffs and restructuring within the company, while acknowledging recent <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41609208/tencent-shuts-down-layoff-rumors-while-announcing-major-leadership-shake-up" rel="noreferrer noopener">changes in its&nbsp;leadership structure</a>.
Ubisoft has launched its first blockchain game, Champions Tactics: Grimoria Chronicles, a tactical NFT<a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/10/41632648/ubisoft-launches-blockchain-game-with-nfts-priced-as-high-as-64-000" rel="noreferrer noopener"> battler now available on PC</a>.
Sony Group Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>) announced the November PlayStation Plus lineup, <a target="_blank" href="https://www.benzinga.com/general/gaming/24/10/41633013/sony-adds-new-death-note-game-to-november-ps-plus" rel="noreferrer noopener">featuring Death Note Killer Within</a>.
Technology
A Russian court has ordered&nbsp;Alphabet Inc.‘s Google&nbsp;to pay a massive fine of $20 decillion for restricting content from Russian media outlets. The fine, which is expected to increase, is&nbsp;a result <a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41621390/google-just-got-fined-in-russia-and-its-more-than-the-worlds-gdp-20-decillion-for-blocking-media" rel="noreferrer noopener">of a long-standing legal dispute</a>.
Jim Cramer&nbsp;said that&nbsp;Alphabet plans to increase investments in artificial intelligence infrastructure next year can significantly <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">benefit&nbsp;</a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">NVIDIA Corp </a><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41625103/jim-cramer-says-googles-ai-investment-next-year-should-be-fabulous-for-nvidia" rel="noreferrer noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</a>.
Smartphones
Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) is all set to&nbsp;integrate the powerful&nbsp;M4&nbsp;processor into its&nbsp;Mac&nbsp;lineup. The new chip will significantly increase core counts compared to its predecessor. This will ensure a marked improvement <a target="_blank" href="https://www.benzinga.com/news/24/10/41565581/mac-mini-may-shrink-to-apple-tv-size-as-cupertino-prepares-to-unveil-new-macs-this-week-expect-ai-an" rel="noreferrer noopener">in daily usage from older models</a>.
Apple is working on developing a new smart home display inspired by <a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">the&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">iMac G4's</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41567694/apple-is-working-on-new-smart-home-display-inspired-by-imac-g4s-design-but-it-could-be-smaller-than" rel="noreferrer noopener">&nbsp;design</a>.
The release of iOS 18.1 brought&nbsp;Apple&#8217;s&nbsp;new AI-powered features, known as&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">Apple Intelligence</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593651/how-to-unlock-apple-intelligence-on-your-iphone-with-ios-18-1" rel="noreferrer noopener">, to iPhone users</a>.
Apple has reportedly initiated initial manufacturing efforts for next year&#8217;s entry-level iPhone model, expected to be named the&nbsp;iPhone 17. For the first time, this early-stage development is taking place in India, moving away from <a target="_blank" href="https://www.benzinga.com/markets/asia/24/10/41616953/apple-wants-to-see-if-it-can-build-iphone-17-from-scratch-in-india-report" rel="noreferrer noopener">Apple&#8217;s traditional reliance on China</a>.
Apple introduced a&nbsp;fresh&nbsp;Mac mini&nbsp;Tuesday featuring the new M4 and M4 Pro chips, compactly engineered to maximize performance within a <a target="_blank" href="https://www.benzinga.com/news/24/10/41607481/apples-refreshes-mac-mini-smaller-form-factor-m4-chip-power-and-carbon-neutral" rel="noreferrer noopener">smaller 5×5-inch form factor</a>.
Artificial Intelligence (AI)
Sierra, the AI&nbsp;startup co-founded by former&nbsp;Salesforce co-CEO and&nbsp;OpenAI&nbsp;chairman&nbsp;Bret Taylor,&nbsp;has achieved a valuation of $4.5 billion <a target="_blank" href="https://www.benzinga.com/news/24/10/41591558/bret-taylors-ai-startup-sierra-hits-4-5b-valuation-just-a-year-after-launch-openai-chairs-latest-ven" rel="noreferrer noopener">following a successful funding round</a>.
OpenAI&nbsp;CFO&nbsp;Sarah Friar&nbsp;revealed that a monumental 75% of the AI startup&#8217;s revenue comes from consumer <a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">subscriptions to just one service –&nbsp;</a><a target="_blank" href="https://www.benzinga.com/news/24/10/41593078/openai-reveals-75-of-its-revenue-comes-from-one-service" rel="noreferrer noopener">ChatGPT</a>.
OpenAI&nbsp;announced&nbsp;that its flagship product, ChatGPT, is now capable of crawling the web for up-to-date news, sports scores,<a target="_blank" href="https://www.benzinga.com/news/24/10/41663190/openai-rolls-out-chatgpt-search-google-shares-slide" rel="noreferrer noopener"> stock quotes and more</a>.
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41566623/steve-huffman-says-people-go-on-google-to-land-reddit-results-it-has-answers-advice-perspectives-alp" rel="noreferrer noopener">Steve Huffman Says People Go On Google To Land Reddit Results: It Has &#8216;Answers, Advice, Perspectives&#8217; — Alphabet&#8217;s Search Dominance Under Threat?</a>

SNAP

Consumer Tech News (Oct 28-Nov 1): Apple Starts Manufacturing Entry-Level iPhone Model, US Bans Investments In China's Semiconductor & AI, & More

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