- On September 2, The Indian government banned PUBG Mobile among 118 Chinese apps due to the violation of section 69A of the Indian IT act.
- Tencent, the original publisher of PUBG Mobile witnessed a -2.34% change in its share price after the PUBG Mobile ban.
- Company valuation had dropped by $35 billion between late July and early August.
- Tencent recorded a loss of $14 billion in its market value.
On September 02, The Indian government took a decision to ban PUBG Mobile among 118 Chinese apps due to the violation of section 69A of the Indian IT act.
Reportedly, These Chinese apps were stealing the user’s data and was harmful for the national security. PIB Reported.
Tencent Holdings, the original publisher of the PUBG Mobile witnessed a 2.34% fell in shares intra-day trading after the ban on PUBG in India.
Furthermore, Due to the drop in shares growth percentage, Tencent Holdings recorded a loss of $14 billion ( approx Rs 1 lakh crore) in its market value after the immediate ban by the Indian government.
According to the Hong Kong Stock Exchange data, ON September 3, Tencent Holdings was trading at 558HKD, ban on PUBG Mobile affected 2.34% fell in shares in one day making it 515HKD on 4th September Thursday.
The fell in shares affected the total $14 billion loss in Tencent Holdings market valuation. Tencent Holdings and its subsidiaries globally market various Internet-related services and products, including entertainment, artificial intelligence, and other technology.
According to the Sensor Tower Data, PUBG Mobile was the most downloaded gaming app during this quarter and most of its users were from India.
Needless to say, the Original PUBG PC game is developed by the south-Korean company Bluehole. Whereas, PUBG Mobile was developed by Tencent which holds a significant 10% stakes in the parent company Bluehole (also known as Krafton).
Moreover, Tencent bought 10% stakes in Bluehole and recorded a revenue of $1.3 billion from PUBG Mobile in 2019.
According to the latest reports, Tencent officials said that the company will engage with the Indian authorities to continue the availability of their banned apps.