Tencent, one of the biggest gaming companies in the world, is planning to acquire Xiaomi’s gaming phone brand, Black Shark. The move reportedly comes as Tencent’s attempt to step into the metaverse.
The news comes from multiple independent sources which claim that the Chinese gaming company wants to integrate Black Shark into its own Content Bussiness Group. Black Shark is also expected to undergo a business transformation once it becomes a part of Tencent. The gaming phone brand will likely get an expansion once the acquisition is complete.
Black Shark’s expansion will reportedly grow into VR-based technologies and devices. The software for VR will likely be provided by Tencent and the hardware will come from Black Shark.
For those unaware, Black Shark is a relatively new company that was founded in 2019 as a sub-brand to Xiaomi. Xiaomi is currently the majority shareholder in the company with a total of 46.4% stake. There is still no official word from Xiaomi or Tencent regarding the acquisition.
After the introduction of the metaverse, several tech companies are stepping into the AR/VR field and it was only a matter of time before Tencent made its move. It would make sense that the Chinese gaming company is reaching out to an experienced tech giant for its expertise and combining it with its own software skills.
We will update this space as soon as there is an official word from either side.
