Gaming Billionaire’s Wealth Plunge Accelerates to $10 Billion after Tencent Sale

Gaming Billionaire’s Wealth Plunge Accelerates to $10 Billion after Tencent Sale

Bloomberg

The man who once was Singapore’s richest person has had one of the world’s biggest wealth plunges.

Forrest Li, the chairman and chief executive officer of Sea Ltd., has lost almost $11 billion of his fortune since the American depositary receipts of the company peaked on October 19, according to the Bloomberg Billionaires Index. After growing competition and a wider profit loss, the latest blow came, when Tencent Holdings Ltd. cut its stake in the gaming and e-commerce giant, driving the stock to its worst slump in almost two years.

Li became Singapore’s richest person last year as the company benefited from a surge in demand for gaming and online shopping amid the Covid-19 pandemic. But things soon started turning sour as Sea faced profitability concerns amid fierce competition and rivals’ public debuts.

Even before Tencent’s move, its ADRs had dropped 39% from the high in October. They fell another 6.6% on Wednesday to close at $184.72 in New York.

Tencent said it is cutting its Sea stake to 18.7% from 21.3%, with its voting rights decreasing to under 10%. The move followed an earlier statement from Sea saying it is seeking to increase the voting power of its Class B shares and that Tencent would convert all such stock into Class A shares, resulting in Li becoming the beneficial owner of all outstanding Class B securities. The change, which is subject to a shareholders’ vote next month, would effectively increase Li’s voting power to about 57% from 54%.