Data Center Provider Wangsu Denies Reports of USD469 Million Tencent Investment
Dou Shicong
DATE:  Jan 29 2018
/ SOURCE:  Yicai
Data Center Provider Wangsu Denies Reports of USD469 Million Tencent Investment Data Center Provider Wangsu Denies Reports of USD469 Million Tencent Investment

(Yicai Global) Jan. 29 -- Wangsu Science and Technology Co. [SHE:300017], a Chinese provider of content delivery network and internet data center services, has refuted reports that it has received more than CNY3 billion (USD469.5 million) in investment from tech behemoth Tencent Holdings Ltd.

Wangsu considers Tencent a key client, but it does not hold any equity in the Shanghai-based firm, nor have the two parties discussed any deal, the company said in a press briefing.

Tencent's had planned to take a 10 percent stake in Wangsu to make inroads in China's cloud computing sector, financial news magazine Caijing reported on Jan. 27. The industry is currently dominated by its counterpart Alibaba Group Holding Ltd. with a share of 47.6 percent, while Tencent trails with 9.6 percent, market intelligence firm International Data Corp. said in a report last November.

Wangsu's recent financial underperformance had led to speculation of a deal. Its core business has been adversely affected by the increasing presence of Alibaba and Tencent in the cloud computing sector, resulting in the firm reducing prices of its services and profits continuously declining. 

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Keywords:   Wangsu Science & Technology,TENCENT,Alibaba,Cloud Computing