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Lego partners with Tencent to create games and a social network for children in China

Key Points
  • The two companies will create a "video zone" for children on Tencent's video streaming platform
  • Lego is competing with rivals including Mattel, the maker of Barbie, which last year announced a deal to sell its products in China via Alibaba's website Tmall.com
Toys at 'Batman Lego' photocall at Los Duques hotel on February 1, 2017 in Madrid, Spain.
Europa Press | Getty Images

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.