The Most Successful Corporate Investment in History: South Africa’s MIH Invests in Tencent

Originally published 2024-04-14Robin’s commentary (as of April 2024), responding to a community question

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English translation of the Chinese post originally published 2024-04-14. Translated 2026-11-05 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

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Asked in a community discussion about the most unusual corporate investment he had heard of, Robin named South Africa’s MIH investment in Tencent. He describes MIH acquiring 45.5% from PCCW, IDG, and Tencent’s founders for around US$32 million in the internet downturn of 2001–2002, becoming its largest single shareholder before its stake declined. With Tencent’s peak market capitalization around US$500 billion, he calculates roughly US$100 billion in gains from that investment. He regards it as perhaps the greatest VC or CVC transaction in history.

Key points

MIH acquired nearly half of Tencent during the internet downturn.
At Tencent’s peak valuation, the gains were roughly 3,000 times the original investment.
The investment is presented as a classic corporate investment case.

Trees at different stages of growth with connected roots on cream paper, suggesting patient cultivation and lasting value. — Venture capital & investmentThematic illustration · AI generated

Full text — English translation

@[100000343593690:2048:扎實], Director: What is the most unusual corporate investment case you have heard of? Robin: South Africa’s MIH Group investing in Tencent. ---- This was probably the most successful investment in VC or CVC history. In 2001–2002, at the global internet industry’s lowest point, South Africa’s MIH Group acquired 45.5% of Tencent from PCCW, IDG, and Tencent’s principal founders for around US$32 million, becoming its largest single shareholder. Its holding subsequently fell to around 30%, or lower. Yet Tencent’s market capitalization once reached US$500 billion at its peak. That implies US$100 billion in gains from MIH’s single investment in Tencent—perhaps the greatest VC or CVC transaction in history, without equal. A few years passed in a flash. China’s former technology giants, Alibaba and Tencent, have been overshadowed by Pinduoduo and ByteDance. More importantly, Alibaba and Tencent remain focused on China, while Pinduoduo and ByteDance have extended their influence and markets beyond it. Tencent was the first venture investment made by South Africa’s MIH Group (Naspers). Naspers originally wanted to acquire a Chinese media company. In 2001, an introduction from former Tencent CXO 網大爲 brought Tencent to its attention, and acquisition discussions began. Negotiations ultimately became Naspers’ US$32 million purchase of nearly 45% of Tencent, beginning a legendary investment. Over the past decade, Naspers’ market capitalization once surged from US$1 billion to over US$100 billion, also thanks to that venture investment in Tencent.

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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