Tencent Holdings (HKG:0700, OTC:TCEHY), the Chinese tech giant that owns stakes in Activision Blizzard, Snap and Universal Music, has done an about-face by going from a net investor in the digital economy to a seller of some of its investments.
It has done so by unveiling plans to offload around US$14.5bn of its US$88bn of listed assets, which will send tremors through the sector.
The move is one that comes after pressure from Beijing looking to clamp down on the power of the country’s newly minted tech moguls.
The Financial Times, citing people close to Tencent, said partial divestments in large Chinese companies such as food delivery service Meituan were in the pipeline.
The FT went on to reveal that cash from stake sales was being distributed in a number of ways, including special dividends, stock buybacks and employee bonuses.
It is thought the proceeds will also be used to bankroll two funds based respectively on the themes of sustainable social values and common prosperity.