The Chinese internet behemoth Tencent Holdings Ltd. has announced on Sunday plans to kickstart its first business restructuring program in more than six years which would include the consolidation of company departments well as the creation of a new division slated to put the focus on cloud computing.
China's other tech giant, Alibaba Group Holding Ltd., has long been trailblazing in the cloud computing department. Tencent, on its case, is now on its way to join the tech revolution with the announcement of its intention to invest on the said internet trend, the Wall Street Journal said.
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As further stated by the Journal, Tencent has slowly been lagged behind in its own area of specialty, which includes video games and advertising, with the rising problems brought by tighter business regulations in the country as well as the maturing market.
Moreover, Tencent has been hounded by various regulatory roadblocks, failing overseas investment strategies, plus the growing debt the company has incurred over the years of its operations.
For the first time in less than a decade, the Chinese firm has finally pushed for corporate restructuring as it continues to face its challenges. The company's market value has since plunged to record-lows this year due to the above conditions.
Citing the official statement issued by the Shenzen-based and Hong Kong-listed firm, Reuters said that the reshuffling will see the consolidation of three content business departments to become a single unit. However, a new group will rise to tackle on cloud computing and smart facilities.
This decision from the gaming company aims to improve its cloud-based data services for its corporate clients while at the same time, boosting its content and entertainment services to include games, music, and social media platform.
Aside from this, Tencent will look further on the option to integrate social, content, and technology into one aspect and to future-proof it, making it more suitable for up and coming trends.
Another plan hoisted by the company is to convene a so-called technology committee which will oversee research and development and will promote collaboration with other Chinese tech companies, paving way for more innovation in this sector.
The report from Xinhua Net cited Tencent's big boss, Ma Huateng, saying that the restructuring is a necessary move to strategically upgrade the company, with the aim for it to become one of the leaders in the development of science and technology.
Tencent's president, Lau Chi Ping, meanwhile, added that industry upgrade will further connect the company to its consumers.
