Apr 08, 2019 (China Knowledge) - Tencent Holdings has invested into two WeChat marketers to become the target company’s largest shareholder as it looks to attract more corporate customers onto its WeChat platform.
The two companies are China Youzan of which Tencent will take a 6.7% stake for USD 70 million and Weimob Inc of which Tencent will take an additional 4.81% in for a combined 7.73% stake in the company. The company did not disclose the value at which it would be purchasing the additional shares in Weimob for.
The purchase comes after Tencent underwent a corporate restructuring program in September last year to create a new division focusing on cloud computing and data services for corporate customers.
Youzan and Weibo currently fit into Tencent’s direction as the two companies provide cloud-based marketing services for small and medium-sized companies over Tencent’s WeChat platform which is also China’s largest social media platform with 1 billion monthly active users.
The companies have managed to enjoy rapid customer growth in recent years as more brands and businesses start to view social media as an important marketing instrument. The two companies have been even further supported by the launch of Tencent’s WeChat mini-programs which provide users with an easy and immediate way to access services through Wechat.
As of last year, more than 1 million apps have been made available on WeChat, according to Tencent.
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