China internet giant Tencent announced a sweeping reorganisation of its consumer business and detailed plans to attract enterprise customers, moves its CEO hailed as positioning the company for the long-term.
In a statement, Tencent said the updated structure would drive the convergence of social, content and new technologies in addition to “enhancing the connectivity between the consumer internet and the industrial internet.”
CEO Pony Ma added the company would increase its investment in new technologies, describing them as an “innovation engine”.
Under the new structure Tencent will create three new units, absorbing a combination of individual business lines from its Social Network Group; Mobile Internet Group and Online Media Group. Other business units will be left intact.
The newly created Cloud and Smart Industries Group will house its existing and new products related to industrial applications and digital transformation for enterprises.
A Platform and Content Group will operate its high traffic and utility platforms including its app store, browser and video content offerings.
Its various commercial and advertising services will be combined into its new Advertising and Marketing Services business line.
“The proactive reform marks a new beginning for the company’s next 20 years,” Ma said. “It is a very important strategic upgrade as we step into the second stage of the Internet, the Industrial Internet era.”
“In the first stage, we connected users to high quality services. In the second stage, we aspire to enable our partners in different industries to better connect with consumers via an expanding, open and connected ecosystem,” he added.
The changes come during increased pressure on Tencent’s core services from authorities in China.
In the last year, regulations have been slapped on both mobile gaming and payment services in the country. In August, the company reported its first decline in profit in 13 years, attributed in part to the new rules imposed on it.
Tencent is not the only China-focused business said to be feeling the pressure of tighter regulation on internet services.
Chief rival in the Chinese mobile payment space, Ant Financial, was rumoured to be switching its focus to B2B technology in June as a direct response to tightened regulation on mobile payments.Subscribe to our daily newsletter Back