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

  • 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
Toys at 'Batman Lego' photocall at Los Duques hotel on February 1, 2017 in Madrid, Spain.

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.