Published on : Jan 19, 2018
Tencent Holding Ltd. currently holds a prominent position in the global market for social networking on the back of its highly successful WeChat, which has been posing a strong challenge to Facebook, the world’s most valuable social network company. On the other hand, Alphabet Inc.’s Google continues to be the worldwide leader in search and technology products. Now, the two tech giants have announced a collaboration for technology and product patents as well as to develop future technologies.
For decades, Google has been aspiring to strengthen its meager presence in the world’s most populated market of China and this agreement is expected to boost its chances further. The search engine was taken out of China in 2010 when it refused to abide by the stringent regulations set by the Chinese government. The company has been since rebuilding its image by sharing its AI software tools with Chinese vendors as well as investing on projects such as new research base.
On the other hand, the collaboration will help Tencent to expand beyond its mainland. WeChat is currently China’s leader in social media and gaming. Tencent has been fighting hard against Mark Zuckerburg’s company Facebook. It must be noted that the U.S. Company had also entered similar deal with Samsung Electronics Co. in the recent past too.
According to Google’s head of patents, Mike Lee, the two companies will be able to work together and develop advanced products as well as services for their diverse consumers.