Tencent to buy Xiaomi-backed gaming phone maker

Tencent is planning to buy Xiaomi-backed Black Shark, a maker of niche gaming phones and accessories, in a deal that will see the latter make virtual reality headsets for the Shenzhen-based gaming titan, Bloomberg reported.

While the size of the deal was not disclosed, the acquisition may help fuel Tencent’s metaverse ambitions.

The potential acquisition comes after Tencent president Martin Lau called the metaverse “a real opportunity,” adding that the concept could take longer to bring to life.

Last year, Tencent partnered with Black Shark to produce a gaming phone that optimizes effects for the former’s flagship gaming title Peacekeeper Elite.

Recently, Tencent sold over US$3 billion worth of its stock in Sea Group but said it would keep a “substantial majority” of its equity in the Southeast Asian tech giant “for the long term” and will not sell any more Sea Group shares for six months.

See also: Sea Group wants to build a super-app empire. Here’s how Tencent did it