Chinese-gaming giant Tencent recently announced that it has purchased the Malaysian video streaming platform Iflix’s “content, technology, and resources” in an attempt to grow its presence in Southeast Asia.
In an official statement, the company said that Iflix’s catalogue of “international, local, and original content” would enable it to expand the reach of its overseas video streaming service, WeTV, which it launched in Thailand in 2019.
Although none of the companies specified any details about the transaction, U.S-based media outlet Variety, which first published the news, cited people with knowledge of the agreement as saying the deal was worth “several tens of millions of dollars.”
According to the report, the amount would be slightly less than the $1bn valuation of Iflix in 2019. Iflix was reportedly planning to publicly list in Australia.
The Malaysian startup, which had raised over $300 million, says it has more than 25 million active users in Southeast Asia. But it is facing significant accumulated losses and financial difficulties, according to two sources familiar with the company.
The purchase comes as part of Tencent’s efforts to capitalise on its fast-growing user base in the region of 650mn, where it operates music streaming service JOOX and popular game PlayerUnknown’s Battlegrounds.
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