At a staff meeting at the end of last year, Mr. Ma expressed his thoughts on a series of changes to come in 2021, saying that Tencent is just an ordinary company in the midst of the country's social development, a beneficiary of the country's development wave, rather than a basic service that can be replaced at any time. In the future, Tencent in the service of the country and society, to do not lack, do, do not offside, do a good assistant, do a good connector.
One senior Tencent official told Late LatePost that in the past it was all about growth, but in the future it will be all about who is more stable. In April 2021, Tencent established the Sustainable Social Value Business Unit (SSV) and pledged to invest 100 billion yuan to practice common prosperity.
Unlike Alibaba, which has a habit of making frequent organizational changes, Tencent (SEHK: 00700) tends to make large-scale organizational changes only when the external environment changes significantly. 2021 is one of those years:
Tencent was asked to give up exclusive music rights; His leading merger of Douyu and Huya was rejected; Opening wechat external jump link for the first time in 8 years; The distribution of game titles is suspended, and the protection of minors is increasingly strict; Nearly wiped out its stake in JD.com, which had been its most important foreign investment; Tencent has fallen out of the top 10 Internet companies in the world as its market value has fallen.
In the past, Tencent used to be the leader in many fields thanks to wechat, its investment ecosystem and its vast collection of Copyrights, but the days of "lying on its back" are gone. Ma Huateng, chairman and CEO of Tencent, and Martin Lau, president of Tencent, said at a staff meeting at the end of 2021 that the company would cut costs and increase efficiency to "survive the winter". As of press time, Tencent's share price was 453 Hong Kong dollars, with a market capitalization of 4.35 trillion Hong Kong dollars (558.5 billion US dollars), making it the world's 11th largest.
In response to the challenges posed by these changes, Tencent has been reorganizing throughout the year, focusing on an unusual number of vice president level executives:
Platform and content business Group (PCG) has changed the number one position in most businesses. This is largely due to the future strategic exploration of PCG: the interaction between virtual world and real society. The new direction needs to be led by managers whose competency models better match. Tencent COO Ren Yuxin said in a staff meeting to give PCG more time.
In the reshuffle, Yao Xiaoguang, vice president of Tencent and president of Tianmei Studio Group, was appointed as the head of QQ's PCG social platform business, which is rare among Tencent's usual appointments. His extensive experience in the gaming industry will help lead QQ's exploration of virtual and real world interaction.
Chieh Xiaohu, the new head of information platform and services, has a strong technical background and has worked at Google and Didi as one of the top three engineers Chinese Internet companies want to lure from Google. With the acquisition of Sogou, Tencent will start to invest in search, and hotspot and QQ browser products will strengthen their recommendation algorithm and recommendation technology capabilities. These businesses are in line with the CAPABILITIES model of QIEtigers.
The cloud and Smart Industry Business Group (CSIG) continues to grow in importance and a regional business unit has been established with the aim of establishing more regional sink channels to reach small and medium enterprises. LatePost learned that li qiang, SAP's former global SVP and general manager of China, has joined CSIG in charge of smart industries and services; Green Orange CEO Zhang Zhidong joined CSIG as the head of Tencent Map.
The interactive entertainment business Group (IEG) is internationalizing just as the growth of the domestic game market is peaking. Among them, the publishing department has established a new international brand Level Infinite, while the two studio groups Tianmei and Photon have set up their own research studios in many overseas locations.
Tencent Music Entertainment Group and China Literature Group have adjusted their business respectively, the core of which is to get rid of the absolute dependence on copyright since their establishment, and further to the upstream industry chain of music, literature and film and television in the future.
Liang Zhu, the former head of QQ, became Tencent Music's new CEO in 2021, and his move comes at a time when Tencent Music was required by regulators to give up its exclusive copyright. A Tencent music source said, the group is strengthening the control of the music business, all content businesses need to be more in-depth coordination to form a true sense of the "group army", from this point of view, liang Zhu has rich management experience in BOTH QQ Music and Tencent PCG is the right candidate.
Tencent is currently China's most valuable Internet company, and wechat has more than 1 billion active users in the country, meaning it faces more challenges balancing regulation, social responsibility and business.