Shadine Taufik · · 1 min readTencent shuts down sell-off rumors, notes healthy cash flow
Tencent has denied a recent report from The Wall Street Journal saying it plans to sell off its investments to buy back its shares, South China Morning Post reported.
After Tencent shares dipped to their lowest value since 2018, The Wall Street Journal shared that the firm was looking to sell its stakes in Didi Global, Meituan, and KE Holdings.
A Tencent spokesperson denied these claims, saying the firm could repurchase its shares without needing to sell off its stake in portfolio companies given its current cash flow. “We don’t have any target amounts for divestments,” they said.
Regardless, it seems that Tencent is cutting back – the first quarter saw 97 less investments and acquisitions compared to the same period the year before, while its headcount shrunk by 5,500 in the second quarter. This year, the tech giant also bought back US$2.3 billion worth of its shares.
See also: Tencent’s financial health in 5 charts
Editing by Miguel Cordon and Lorenzo Kyle Subido
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