Tencent Managed To Save Iflix From Bankruptcy

JAKARTA - PUBG Mobile game developer, Tencent, has officially acquired the on-demand video streaming platform from Malaysia, Iflix. This is a step for Tencent to expand to Southeast Asia through its platform, WeTV.

"We confirm that Tencent has purchased iflix content, technology and resources," said a Tencent spokesman, as quoted by Reuters, Thursday, June 25.

In its official statement, Tencent will purchase all content, technology and resources of iFlix based in Malaysia. It was not stated how much funds were disbursed, especially after Iflix experienced a debt crisis.

The iflix acquisition will give WeTV instant access to over 25 million subscribers in 13 countries in Southeast and South Asia including Malaysia, Indonesia, Philippines, Thailand, Brunei Darussalam, Sri Lanka, Pakistan, Maldives, Myanmar, Vietnam Cambodia, Nepal and Bangladesh.

"Acquisition includes a strong local network in emerging markets with a wide and attractive selection of content such as TV shows, movies and original content to be streamed or downloaded on various internet-connected devices," explained the Tencent representative.

Even though Tencent has purchased it, it is not yet known whether this streaming platform will change its name or at least the next six to 12 months. In addition, the majority of Iflix staff is currently expected to remain, including CEO Marc Barnett.

Previously, its competitor Hooq had already gone out of business. At almost the same time, Iflix was also reportedly experiencing financial difficulties due to the COVID-19 pandemic.

This requires the company to use the remaining cash reserves to cover the burden of the advertising budget. If the accumulated losses of Iflix reached US $ 378.5 million, since 2018.

Prior to this, Iflix had also been abandoned by Patrick Grove, who was an Iflix leader, on April 9. Likewise Luke Elliott, co-founder of Iflix, also resigned from the company's board the same day.