Tencent Holdings and Meta Platforms Inc are holding talks over the sales and distribution of Meta’s Quest line of virtual reality headsets in China.
Reuters reports that the talks between Tencent and Meta started last year and have continued in recent months.
Details have yet to be agreed upon as the talks remain in the early stage.
Tencent has eyes on the Metaverse with ambitious plans to build both virtual reality software and hardware at an "extended reality" XR unit it launched in June last year.
Tencent is mostly known for software that includes a suite of games and social media applications.