Could Tencent Be The Ultimate Play On Metaverse?

$Tencent(TCEHY.US)$ the owner of popular video game companies and games, is planning to connect its video games to the metaverse.Metaverse was a hot topic in the question-and-answer portion of Tencent’s third-quarter earnings call. Executives took turns highlighting plans of getting into the metaverse.Tencent said one way to grow in the metaverse is through a social network that is “gamified and supports much more programmable experiences.”

Why It’s Important: Video games are the largest revenue driver for Tencent and the company is the largest video game company in the world. As video games become a big entry point for the metaverse, Tencent could have a lot to gain given its strong position in the industry.

Tencent owns Riot Games, the maker of “League of Legends,” one of the biggest video game franchises of all time. Tencent also owns a stake in Epic Games, the company behind the hit “Fortnite.” Tencent has a joint venture with $Roblox(RBLX.US)$

The intellectual property opportunities could be vast for the company with its video game ownership and its strong presence in the social network space, with Weixin and WeChat having 1.26 billion monthly active users combined.