Lego has teamed up with Chinese internet giant Tencent to create branded video games and potentially a new social network aimed at children, the two companies announced Monday.
Tencent is one of Asia’s most valuable companies and is a massive player in mobile gaming and online video streaming.
Lego has struggled in recent times and was last year forced to cut around 1,400 jobs. China is a bright spot for Lego, however, with revenues growing double-digit versus declines in the U.S. and parts of Europe in the first half of 2017, the last time it released financial figures.
The toy-maker has been pushing further into China to help stoke growth. Lego will develop a “video zone” for children on Tencent’s video streaming platform as well as Lego-branded games.
Lego’s partnership also includes Lego Boost, a building and coding set that brings movement to its brick creations. The two companies also said they will explore co-developing Lego Life, a “safe social network for children” in China.
The Danish firm faces competition in China from rivals. Last year, Mattel, the maker of Barbie, announced a deal to sell its products in China via Alibaba’s marketplace website Tmall.com.
Source: CNBC
