In 2018 Tencent snatched up a majority stake in the New Zealand developer of Path of Exile, Grinding Gear Games. Some games industry analysts have suggested that Tencent is buying games firms as it has a limited games design capacity of its own. Published 4 months ago: August 7, 2020 at 12:30 pm-Filed to: donald trump. 8/06/20 10:30PM • Filed to: tencent. Tencent … Venture Capital is money, technical, or managerial expertise provided by investors to startup firms with long-term growth potential. Full Disclosure: I own shares in Tencent after doing research on it for this two-parter. Sony and Epic Games have announced that Sony now has a minority stake in the Fortnite developer after spending $250 million. Years before Ubisoft, Tencent helped another company escape Vivendi: Activision Blizzard. Paradox Interactive - 5 percent: When Swedish grand strategy publisher Paradox first went public in 2016, Tencent swooped in to buy 5 percent for $21 million. Tencent was one of several investors that helped Ubisoft survive a hostile takeover last year from Vivendi, who at the time was Ubisoft's largest stakeholder. Brexit refers to the U.K.'s withdrawal from the European Union after voting to do so in a June 2016 referendum. In 2011, Tencent went from being Riot Games' publishing partner in China to its majority stakeholder after paying $400 million for a 93 percent stake in the League of Legends developer. Kleiner Perkins, Lightspeed Venture Partners, Vulcan Capital, Iconiq Capital and aXiomatic, owner of the competitive-videogaming organization Team Liquid, took part in the fundraiser, buying stakes in a company that is already backed by the likes of Tencent Holdings Ltd (TCEHY) and Walt Disney Co. (DIS). He's Canadian but can't ice skate. That is now mostly water under the bridge now that Tencent has abandoned Arena of Valor in the West and Riot is now making a mobile version of LoL. Tencent bought a 40 percent stake in Epic at a valuation of about $825 million back wen “Fortnite” was still in the early stages of development. The Epic Games Store is a new place to purchase PC games online. Surprisingly, the Potomac, Maryland-based company’s strategy to shift away from big, boxed, marketing-driven titles and pricey games paved the way for massive profits. The Chinese investment holding conglomerate’s roughly $330 million outlay was used by Epic as a platform to bankroll some major changes. But, like many of Tencent's acquisitions, Grinding Gear Games has supposedly kept its independence over Path of Exile's operation. Shortly after, Tencent had the client's name changed to QQ; this was said to be due to a lawsuit threat from ICQ and its owner AOL. Tencent will additionally allow the integration of its game streaming platform, Penguin e-Sports, into the newly merged Huya ecosystem. In February 1999, Tencent's messenger product OICQ released. ", “I would describe it as seeing the writing on the wall,” said Sweeney about the decision. 12. Californian company Riot Games, best known for its billion-dollar franchise League of Legends, is now 100 percent owned by Chinese company Tencent. Share. These concerns have been connected to broader issues of general distrust of the Chinese government and Chinese corporations among some Western video game players. In the year since, little has changed about Path of Exile's economy or microtransactions despite the game's continued growth. PSA: Epic Games parent company Tencent has rights to DC characters. Epic’s latest big backers will be hoping that their cash will similarly be put to good use. A quick reference of how China's largest tech conglomerate has quietly expanded into videogames. Tencent purchased 48.4 percent of the remaining shares in Epic at the time, which equates to an overall total of a 40 percent stake in Epic Games. Sign up to get the best content of the week, and great gaming deals, as picked by the editors. Steven enjoys nothing more than a long grind, which is precisely why his specialty is on investigative feature reporting on China's PC games scene, weird stories that upset his parents, and MMOs. This also included famed and highly profitable video games such as League of Legends, Valorant, and Fortnite. Update, 10/9/2019: This article originally claimed that Tencent had a 48.4 percent stake in Epic Games, but that was slightly misleading. The Chinese conglomerate Tencent has a major presence within the industry. We don't share it, sell it, or broker access to it for advertising like so many other companies do. This deal does not stop Epic from publishing its games … New York, Chinese tech conglomerate Tencent have managed to draw the eyes of the US government for their dealings with American companies like Riot and Epic Games. Epic used Tencent’s cash injection to drop the monthly charge for its game engine and give it away to anyone who wanted to use it. More recently, Tencent has announced plans to acquire Funcom entirely. Luke Plunkett. We've updated the article to reflect that. The company … Riot Games remains largely free to steer the game how it pleases, but that relationship has some ugly downsides. Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. The purchase alarmed Path of Exile players who feared the Chinese publisher would start implementing more aggressive microtransactions or changes to Path of Exile's delicate in-game economy. Concerns have been raised with the security arrangements over the personal data of American citizens at Epic Games and Riot Games, with the association both companies have with Chinese firm Tencent prompting questions from the Trump administration. Some games industry analysts have suggested that Tencent is buying games firms as it has a limited games design capacity of its own. Epic leveraged the success of Fortnite to launch its own game store. President Trump Now Targeting Tencent, Who Own Riot Games And 40% Of Epic. In 2013, Tencent acquired a 40 percent stake in Epic Games. Tencent is the biggest gaming company in the world. Similar to Platinum Games, Yager's infusion of cash allows the company to keep its independence while upscaling its operations. That's why I've created this reference listing each of Tencent's public investments in foreign gaming companies (basically, companies outside of China), including, where possible, how much of that company Tencent owns. Chinese tech conglomerate Tencent have managed to draw the eyes of the US government for their dealings with American companies like Riot and Epic Games. Tencent made that investment in 2012. President Trump Now Targeting Tencent, Who Own Riot Games And 40% Of Epic. Fatshark - 36 percent: Warhammer: Vermintide 2's success led Tencent to acquire a large minority stake in Swedish developer Fatshark in early 2019 for an estimated $56 million. I disagree. Sales trends from Fortnite alone imply that Epic Games may be among the most valuable video game companies in the world. Back in 2013, Tencent bought a nearly 50% stake in Epic Games, developers of the massive action franchise Gears of War. So Riot Games (League of Legends), Epic Games (Fortnite), et al are safe. Tencent is the world's largest games publisher. Kotaku highlights that Epic Games may not feel a big impact, as Tencent only has 40% stakes on the Fortnite makers. The success of “Fortnite” and its popular online battle royale mode has propelled the company to the top of the more than $100 billion videogame industry, forcing sector heavyweights Activision Blizzard, Inc. (ATVI) and Electronic Arts Inc. (EA) to rethink their strategies. Do not be surprised If posts get locked as you may suddenly find we might not any longer be able to openly discuss Epic Games, Metro Exodus or anything that does not agree with them. Update, 10/7/2019: Originally this article stated Tencent owned a 39.7 percent stake in Sea but that number was outdated. Thank you for signing up to PC Gamer. Initial funding was provided to it by venture capitalists. Tencent also has a notable involvement in Hollywood. As part of the agreement, though, Tencent is just a silent partner who cannot increase voting rights or ownership stake in Ubisoft—making a hostile takeover by Tencent impossible. But with over 300 investments in its portfolio, staying on top of every company that Tencent has a stake in can be a little daunting. Epic Games Inc. has used the overwhelming success of … Those titles, too, are … Embarrassing. We develop cutting-edge games and cross-platform game engine technology! Tencent's purchase of Riot was nothing short of prescient—League of Legends is the most popular PC game in the world, pulling in an estimated $1.4 billion in revenue last year. Epic co-founder Tim Sweeney told Polygon that Tencent's money helped the company "make this huge leap without the immediate of fear of money. US President Trump recently issued an executive order banning transactions with Tencent's WeChat app, but has since clarified that this won't affect the company's gaming offers. Since the free-to-play game was released last year, Epic has netted more than $1 billion in revenue from microtransactions, according to estimates from SuperData, as players forked out to upgrade character outfits and dances. Frontier Developments - 9 percent: Tencent invested £17.7 million into the developer of Elite Dangerous and Planet Zoo in 2017 as part of a strategic partnership to capitalize on increased interest in space and "themepark" games in China. 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