Tencent Is Planning a Valorant League as Gaming Crackdown Eases in China

gadgets.ndtv.com:

Tencent is planning to launch a Valorant esports league when the hit shooter title debuts in China this year, one of the strongest signs yet that the country's internet giants are getting back to business after a two-year industry crackdown.

Tencent unit TJ Sports has held discussions with top Chinese esports players in recent days about setting up the competition, people familiar with the matter said. It could kick off a tournament over the summer at the earliest as Tencent rolls out the game domestically, one of the people said, asking to not be identified discussing private information.

Talks are in their initial stages and Tencent could push back its timeline, the people said. But a Valorant league will help reboot competitive online gaming in China after a two-year lull when pandemic restrictions and Beijing's clampdown on youth addiction chilled the world's largest gaming arena.

Launched globally in 2020, Valorant has grown to become one of the most popular esports titles, vying for a multibillion-dollar market along with rival shooters like Blizzard's Overwatch. Tencent won approval to roll out the title only in December, in what investors took as a sign that the government was preparing to relax its grip on the sector.

Tencent's shares extended gains in late Hong Kong trading to climb as much as 1.8 percent, before ending largely unchanged. Brokerages including Morgan Stanley have raised their price targets on Tencent in recent weeks, anticipating a recovery in growth as restrictions ease and efforts to sell video ads gain momentum.

“These are positive signs that China tech companies are back to business with regulatory headwinds largely behind,” said Marvin Chen, an analyst at Bloomberg Intelligence. “It is also