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These payments might seem too small to amount to such significant revenue.

However the immense scale of player number across China makes this business model very lucrative.

Naspers was one of the very early investors into Tencent in 2001.

This single investment of $32 million has grown in value to nearly $66 billion, making Naspers the most valuable company in Africa.

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They took this route knowing that if We Chat was successful it would end up cannibalizing it’s own QQ user base.

We Chat was born mobile unhindered by the legacy of desktop.

Other investments Tencent have their fingers in a lot of pies.

They invest in newer, smaller internet businesses almost on a weekly basis.

It has been able to leverage the possibilities of mobile in a way that Western apps rarely manage: shake, QR codes, voice messaging, voice recognition, location based services are all inherently mobile.

For many years Tencent received criticism for simply being a copy cat of other people’s ideas.

Licensing of the penguin logo is a significant revenue generator for Tencent.

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