The Most Successful Corporate Investment in History: South Africa’s MIH Invests in Tencent

@[100000343593690:2048:扎實], Director: What is the most unusual corporate investment case you have heard of? Robin: South Africa’s MIH Group investing in Tencent. ---- This was probably the most successful investment in VC or CVC history. In 2001–2002, at the global internet industry’s lowest point, South Africa’s MIH Group acquired 45.5% of Tencent from PCCW, IDG, and Tencent’s principal founders for around US$32 million, becoming its largest single shareholder. Its holding subsequently fell to around 30%, or lower. Yet Tencent’s market capitalization once reached US$500 billion at its peak. That implies US$100 billion in gains from MIH’s single investment in Tencent—perhaps the greatest VC or CVC transaction in history, without equal. A few years passed in a flash. China’s former technology giants, Alibaba and Tencent, have been overshadowed by Pinduoduo and ByteDance. More importantly, Alibaba and Tencent remain focused on China, while Pinduoduo and ByteDance have extended their influence and markets beyond it. Tencent was the first venture investment made by South Africa’s MIH Group (Naspers). Naspers originally wanted to acquire a Chinese media company. In 2001, an introduction from former Tencent CXO 網大爲 brought Tencent to its attention, and acquisition discussions began. Negotiations ultimately became Naspers’ US$32 million purchase of nearly 45% of Tencent, beginning a legendary investment. Over the past decade, Naspers’ market capitalization once surged from US$1 billion to over US$100 billion, also thanks to that venture investment in Tencent.