Tencent Has Grown 'Fat' And Will Focus On Short Videos To Drive Growth
In an internal town hall meeting last week, Tencent Holdings founder and CEO Pony Ma Huateng said that short video is the future and that the internet giant must focus on core businesses in 2023. Jiemian published parts of the speech on Thursday.
According to the article, Ma discussed Tencent's cost-cutting initiatives and criticised employees for not responding quickly to boost efficiency in the year-end meeting. “Don't give me the odds,” Ma replied. “How large can a noncore company develop, and if it becomes enormous, so what?” he said. He said that the compnay has been divesting its investments, should focus on cutting costs and developing core sectors rather than expansion and size. Ma said the company only grew "fat".
The 51-year-old Chinese tech tycoon, who has kept a low profile in recent years, warned staff that any business might well be removed if it underperforms. Ma warned staff that short video is the future of the firm and would undermine lengthy films and video games. He stated that they may stop investing in movies that underperforms.
According to the article, Ma called Tencent Channels "the hope [of the firm]." Ma said the firm would increase e-commerce operations for short videos. Ma also warned that its video gaming sector, which is Tencent's main revenue driver, would remain under strict regulation and that authorities will limit new game approvals.
Ma's statement followed months of cost-cutting, including layoffs and firm closures, due to economic and regulatory challenges in video gaming and advertising. According to an unnamed employee, Ma stated that cost-cutting has paid off and would continue into next year. Ma predicted growth from short video, finance, and SaaS (Software As A Service).