The acquisition, priced at approximately 120,000 won per share and amounting to 422.8 billion won, was an attempt by the company to gain managerial control over SM Entertainment. In a significant reshuffling of K-pop industry stakes, HYBE has officially ended its two-year-long investment in SM Entertainment by selling its remaining shares to Tencent Music Entertainment. The transaction was revealed following a board meeting on May 27, 2025, as per YONHAP NEWS AGENCY. This marks a decisive move by the umbrella company to offload what it now considers a non-core asset.
Tencent bets on 1.4 billion user WeChat empire to get ahead in China's AI race
Following this acquisition, Tencent Music is positioned to become SM Entertainment’s second-largest shareholder. Following this, the umbrella company launched a public tender offer to acquire an additional 25% of shares from the market. All the company could manage was to secure an extra 0.98% more, bringing its total stake to 15.78%.
The company still has a lot going for it, which could enable it to continue delivering market-beating total returns. It's gmarkets delivering rising revenue and profits, giving it money to reinvest in growing its business and return cash to shareholders through dividends and stock repurchases. It's investing in innovative technology, including artificial intelligence (AI) to power its advertising technology platform.
- Whether Tencent is a good stock to buy depends on your personal trading strategy and the market environment.
- The sale will be executed through an after-hours block trade scheduled for May 30, once the Korean stock market closes.
- Tencent’s share price may rise during periods of optimism, as seen during the pandemic-driven demand for digital services.
- Once you complete the order page, click to submit your trade and become a Tencent shareholder.
The company’s current efforts are concentrated on strengthening platforms such as Weverse and preparing for a new era of global growth. As per Moneycontrol, HYBE has attributed its complete divestment from SM Entertainment to a broader strategic realignment. This is aimed at streamlining its portfolio and concentrating on core business priorities. According to SPOTV news, the company stated that the sale is part of a “reorganization of non-core assets,”. They hint that SM Entertainment no longer fits within HYBE’s long-term vision.
Price to Earnings Ratio vs. Sector
Select to analyze similar companies using key performance metrics; select up to 4 stocks. The decision comes as the company pivots toward initiatives focused on global expansion, technological advancement, and the development of new talent. These forward-looking priorities are also being shaped by the anticipated return of BTS in 2025 following the group’s ongoing military enlistment, as per Moneycontrol.
CFDs are considered a short-term trade, as they tend to be used within shorter timeframes. Chinese Economic growth can drive higher spending on Tencent’s services. When China’s economy rebounded post-lockdowns, Tencent’s gaming and fintech revenue grew significantly, reflecting stronger consumer activity. In addition to digital entertainment, Tencent has a significant presence in the financial sector, offering digital payment solutions via WeChat Pay and QQ Wallet. HYBE’s involvement with SM began in February 2023 when the former acquired a 14.8% stake in SM from its founder and previous executive producer Lee Soo-man, as per South Korean news outlet BusinessKorea.
SM Entertainment’s stock has climbed approximately 20% over the past month, driven by optimism around a potential easing of Chinese restrictions on Korean entertainment. This speculation has boosted confidence in renewed demand for K-pop content across the Chinese market. With this acquisition, following Kakao, Tencent Music octafx broker reviews is set to become the second-largest shareholder of SM Entertainment, an agency of Kpop groups like EXO, Red Velvet, aespa, and more. The original purchasing of the shares happened in early 2023 during an intense contest to gain influence over SM’s management, which ultimately ended in Kakao’s favor. CFDs are complex leveraged instruments and come with a high risk of losing money.
Financial Highlights
In response to the US Department of Defense's designation, Tencent executed its largest share buyback since 2006 in January 2025, repurchasing approximately 4.05 million shares for $193.3 million. This move aimed to stabilise Tencent's stock price following its designation by the US as a Chinese military company. Tencent’s share price history began on the Hong Kong Stock Exchange (HKEX) on 16 June 2004, listed under the ticker symbol ‘0700’. The company’s initial public offering (IPO) was priced at HK$3.70 per share. Following a 5-for-1 stock split on 20 May 2014, the adjusted IPO price is equivalent to HK$0.74 per share today. Chinese tech giant Tencent says its artificial intelligence (AI) investments have begun paying off.
This momentum saw its stock price hit a record high of HK$405.24 in November 2017, driven by growing revenues and trader optimism around its market dominance. Tencent operates in competitive markets, including gaming, social media, and fintech. Positive developments, such as Tencent’s investments in AI startups or potential acquisitions like Ubisoft, can enhance its competitive edge, boosting its stock price. During the early years following its IPO, Tencent’s share price experienced steady growth as the company expanded its footprint in social media and online gaming. The launch of WeChat in 2011, which rapidly became one of China’s most popular apps, was a turning point that contributed to sustained upward momentum in the stock price.
- Tencent is not classified as a ‘pure-play’ AI stock like C3.ai, but artificial intelligence (AI) is prevalent across the business.
- Chinese Economic growth can drive higher spending on Tencent’s services.
- The company's innovation business includes artificial intelligences, such as robotics and quantum computing; and enterprise and next-generation technologies for food production, energy creation, and water management applications.
- Capital Com Online Investments Ltd is a limited liability company with company number B.
Analyst Price Targets
CFDs are traded on margin, which means that a trader can get exposure to larger positions with a relatively small outlay. In this scenario, both your profits and losses are amplified, making such trading risky. You can learn how to trade shares in our comprehensive guide to shares trading. With CFDs, you can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall).
In releasing its quarterly earnings on Wednesday (May 14), the company's CEO noted that its AI capab... In mid-2024, Tencent's dividend yield was less than 1% (given its share price and the exchange rates at the time), less than the S&P 500's roughly 1.4% dividend yield. Given Tencent's lower yield, annual payment schedule, and the risk of foreign exchange rate fluctuations, it's likely not a very appealing option for most dividend-focused investors. It's essential to thoroughly research a company before buying its shares.
Chinese tech giant Tencent posts 13% revenue jump as growth at key gaming unit surges
Worsening conditions in China could pose challenges to the company’s growth trajectory. Positive regulatory developments can boost trader confidence and lead to price increases, such as when the Chinese government ended its freeze on gaming licenses in 2022 – Tencent’s stock price increased. Tencent’s live stock price may be influenced by a range of unique and sector-specific factors, including market sentiment, macroeconomic conditions, and regulatory developments.
These catalysts could enable the company to continue growing its profits and shareholder value in the future. Its communications and social services connect more than 1 billion people. In addition, Tencent provides a range of services, including cloud computing, advertising, and financial technology. In many ways, Tencent is like many of the top U.S. technology companies all rolled into one. The company’s innovation business includes artificial intelligences, such as robotics and quantum computing; and enterprise and next-generation technologies for food production, energy creation, and water management applications. Strong quarterly earnings, fuelled by hit game releases or growth in WeChat Pay usage, can lead to share price gains.
Not everyone wants to be an active stock picker, especially when it comes to investing internationally. Thanks to exchange-traded funds (ETFs), you don't have to actively manage a portfolio of stocks. You can passively invest in an ETF that holds stocks based around a common theme or broad market index, such as Chinese stocks. The company's strong profitability and cash flow allowed it to return significantly more money to shareholders.
Even after including those items, Tencent posted $16.3 billion of profit attributable to equity holders in 2023 (although that was down 39% from 2022's level). Before making your first trade, you'll need to determine a budget for how much money you want to invest. 50 pips a day forex day trading strategy The Motley Fool's investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years. Whether Tencent is a good stock to buy depends on your personal trading strategy and the market environment. Factors to consider include Tencent’s financial performance, the regulatory landscape in China, and broader macroeconomic conditions. Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Tencent stock market price, and speculate on its price movements without actually owning the asset.