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Tencent nears deal for smartphone maker in main metaverse push

Tencent Holdings Ltd. is nearing a deal to amass Chinese language gaming handset maker Black Shark, a transfer that might assist the tech behemoth additional its ambitions for the metaverse, folks with information of the matter stated.
Tencent has begun talks to purchase Black Shark, a distinct segment maker of gaming telephones and equipment, in response to the folks, asking to not be recognized as the data hasn’t been made public. The smaller agency, whose buyers embrace Xiaomi Corp., will pivot to creating digital actuality headsets for its new mother or father after the deal, one of many folks stated.
Representatives for Tencent, Black Shark and Xiaomi didn’t instantly reply to requests for remark. The potential acquisition was beforehand reported by native commerce publication 36Kr.

Alongside world giants like Fb proprietor Meta Platforms Inc., China’s largest tech agency is a contender within the race to develop the metaverse, conceived as a digital setting the place folks can work together with the web and others. In a latest earnings name, Tencent President Martin Lau known as the metaverse “an actual alternative” although he cautioned that the idea might take longer than anticipated to deliver into actuality.

Creating specialised {hardware} is without doubt one of the key pillars to realizing the metaverse. Meta was one of many earliest movers, shopping for VR headset maker Oculus in 2014, whereas high Chinese language rival ByteDance Ltd. final yr bought Pico, a home VR headset maker.
Black Shark, a little-known startup that calls its customers members of the “Revolt,” sells its stylized telephones in addition to a plethora of equipment reminiscent of controllers in China, Europe and India. Final yr, Tencent collaborated with Black Shark on a gaming cellphone that optimizes results for the previous’s flagship title Peacekeeper Elite.

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