China’s Government Takes Stake in a Tencent Domestic Unit — The Information

China’s government has taken a stake in a domestic subsidiary of Tencent, the operator of WeChat, China’s biggest messaging app, in the latest step by Beijing to tighten its control over the country’s big tech firms.

The government has taken a similar sized stake in the domestic subsidiaries of several other tech giants over the past few years, including ByteDance, Alibaba, Kuaishou and Weibo. Such an arrangement, known as “special management shares” or “golden shares,” typically gives the government a board seat in the domestic unit. These investments are part of President Xi Jinping’s government’s efforts to exert more control over domestic internet companies that operate major content platforms.

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