Tencent is the most sucesful Chinese internet firm with a market cap of $80 BILLION (4x Yahoo!'s current value).
In terms of value to investors Oliver Wymann recently ranked them as the highest value creating firm in the Telecom and Media space, followed closely by the South African Media conglomerate Naspers...which happens to own 40%+ of Tencent.
Their success comes not only from their massive number of users, (355M according to this recent post by Bill Gurley of Benchmark Capital) but more importantly by the revenue they generate per user ($3.38 in real dollars, which Bill equates to $17 on a cost-of-living adjusted basis).
Maybe it's a cultural thing, maybe it's an education thing, but QQ's over the top, in your-face selling of Avatars, gifts, virtual goods and cute penguins... but it works! Tencent's mobile deals and ability for users to extend their network from PC (internet cafe as primary PC based access point) to mobile with significant success.
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Love that you're bringing up Tencent! They have over 700M registered users, out of which 300M+ actively engage. I agree with you that it's really about their ability to extend their network from PC to mobile, but also offer a 'seamless' user experience across disparate applications. Sure, the in-your-face selling of Avatars using its own currency may be a cultural thing (or Second Life v.LITE), but the overall "one-stop online living" with multi-media IM, email and community portals that helped develop and support the large user base shouldn't be discounted.
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