- Tencent ( OTCPK:TCEHY ) is reportedly in talks to become the exclusive seller of Meta Platforms' ( NASDAQ: META ) Quest 2 virtual-reality headsets in China as it looks for sources of revenue beyond the slowing videogame and advertising businesses.
- Citing people familiar with the matter, The Wall Street Journal reported Tuesday that the talks are in early stage and a deal might not be reached.
- The headset and its apps are not officially available in China at the moment. Should the deal come through, it would be a significant step for Meta ( META ) in China, where Facebook has been blocked since 2009.
- A potential partnership with Tencent ( OTCPK:TCEHY ) could provide Meta access to one of the world's biggest videogame markets, but China's tighter regulations on videogames could be a hurdle.
- In other major development, Meta ( META ) is said to launch monthly subscription service for Instagram and Facebook later this week
- Shares of the tech giant were up 2% in Tuesday's premarket session
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Tencent reportedly in talks to sell Meta's Quest 2 VR Headset in China