U.S. blacklist of China’s gaming giant wipes out $3.8 billion from Africa’s most valuable company

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At a Glance

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• Naspers’ valuation fell by R69.8 billion ($3.8 billion) due to the U.S. blacklisting of Tencent as a “Chinese military company.”
• The U.S. Department of Defense’s move against Tencent triggered over 8% declines in Naspers and Prosus shares since early 2025.
• Despite setbacks, Naspers reports strong earnings growth, with $4.5 billion profit for H1 2025, under CEO Fabricio Bloisi’s leadership.

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Naspers, Africa’s most valuable company and a global leader in consumer internet services, has lost $3.8 billion in market value following the U.S. government’s decision to blacklist Tencent Holdings, China’s top gaming company, as a “Chinese military company” on Jan. 6. Naspers owns an indirect 24.6 percent stake in Tencent through its Amsterdam-based unit, Prosus.

Tencent woes hit Naspers hard

Market data tracked by Shore.Africa shows that Naspers’ market capitalization dropped by R69.8 billion ($3.8 billion) over 18 days, sliding from R725.2 billion ($39.4 billion) on Jan. 6 to R655.4 billion ($35.6 billion) at the time of this report.

This decline reflects a ripple effect from Tencent’s own struggles, with the Chinese tech giant’s shares falling over 6 percent since the start of the year. The downturn has hit Naspers hard, with its stock losing more than 8 percent of its value during the same period.

Naspers shares slide on DoD blacklist

The blacklisting, issued by the U.S. Department of Defense (DoD), has also impacted shares of Prosus, which, like Naspers, is down more than 8 percent since the beginning of 2025.

The move, which came just weeks before Donald Trump’s return to the White House, was part of a broader campaign targeting Chinese companies such as CATL (a Tesla supplier) and shipbuilding firms like Cosco Shipping Holdings Co. and China State Shipbuilding Corp.

Tencent and other blacklisted firms denied any military ties, pushing back against the Pentagon’s classification. Meanwhile, Naspers continues to navigate the fallout, maintaining its position as a leader in the tech sector despite the challenges posed by its exposure to China.

Tencent investment fuels billion-dollar growth

Naspers’ journey to success began in 2001 when South African billionaire Koos Bekker spearheaded a $34 million investment to acquire 50 percent of Tencent, a company now valued at over $460 billion. Over the years, its Amsterdam-based unit, Prosus, has grown into a global powerhouse, with investments in PayU, a Netherlands-based payment provider, and Takealot, South Africa’s leading e-commerce platform.

Under the leadership of its new CEO, Fabricio Bloisi, Naspers reported strong results for the first half of its 2025 fiscal year. Profits rose from $3.33 billion to $4.5 billion, driven by $3.44 billion in revenue compared to $3 billion in the same period last year.

This growth was further supported by a $2.36 billion gain from selling part of its equity-accounted investments and $2.46 billion in equity-accounted earnings. While the company has faced challenges tied to its Tencent stake, it is showing clear signs of resilience and strength as Bloisi begins to leave his mark as CEO of both Naspers and Prosus.

Bloisi plans $100 billion value creation

In an update to shareholders in October, Bloisi expressed optimism about the company’s future, stating, “Today Prosus is worth around $100 billion, and I am focused on how we can create another $100 billion of value in the Prosus ecosystem by building and investing in fast growing and profitable businesses. I am also focused on how that will generate real returns for our shareholders.”