[Levin]

PUBLISHED TUE, JAN 4 202210:45 AM EST


Chinese gaming and social media company Tencent Holdings Ltd said on Tuesday it would cut its stake in Singapore-based gaming and e-commerce firm Sea Ltd, reducing its voting power to under 10%.

According to a term sheet reviewed by Reuters, Tencent is selling at a price range of US$208.00-US$212.00 per share, bringing the total divestment to up to US$3.1 billion. Sea’s last close price was US$223.31 per share.

......

Tencent will divest about 14.5 million shares, reducing its stake to 18.7% from 21.3%. The company said it intends to retain the substantial majority of its stake in Sea for the long term.


https://www.cnbc.com/2022/01/04/tencent-...p-sea.html

[sgbuffett]

By  being unable to raise money easily as nasdaq  start to avoid loss makers...many loss making Internet companies like Sea will lose ability to compete...without fresh cash to burn

Profitable tech giants like Tencent and BABA will consolidate its profit making business and cut out loss making arm that are in cash burning battle for market share.

Loss makers like Blibli, PDD, etc who have to burn cash to gain market are now out of steam and retrenched people.

This will cement the position of incumbents.like BABA and Tencent who can generate cash internally to fight.

Tencent pulling out of SEA also means Lazard has l3ss competition and can go with growth plan.

The landscape is changing. Don't invest loss makers trying to be champion....invest only in profitable champions whose power will grow.

[sgbuffett]

Look at meituan which was a hot stock early last year its cash burn rate is not sustainable without enthusiastic investors to fund and without a path to Nasdaq listing ...

Avoid all these loss makers. Their story will end ugly.



https://www.bloomberg.com/news/articles/...0of%202018.

[sgbuffett]

Avoid China stocks in streamjng wars like Bilibili.
It has no money to win.

https://amp.scmp.com/tech/tech-trends/ar...omes-under