Tencent Reveals 40 Percent Interest in Epic Games

Tencent Reveals 40 Percent Interest in Epic Games

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Last summer's "minority investment" gave the Chinese company a 40 percent interest in the Gears of War studio and the right to appoint people to its board of directors.

Epic announced last June that Tencent, a Chinese holding company with interests in, among other things, social networks, online games and other digital media, had acquired a minority stake in the company. But yesterday it came to light that Tencent actually ended up holding 40 percent of Epic, which, while still a minority, is an awfully big slice of the pie, enough to give it the right to name two directors to the Epic board.

"In June 2012, Tencent made a minority investment in Epic Games, purchasing approximately 48.4 percent of outstanding shares of Epic stock, equating to 40 percent of total Epic capital inclusive of both stock and employee stock options," Epic co-founder Tim Sweeney told Polygon. "We're thrilled to have a world-leading partner in Tencent, who gives Epic unique access to the Chinese market as we head into the next chapter of our 21-year history as a leading independent developer."

Tencent spent $330 million on its slice of Epic, but what's really interesting, at least for the conspiracy-minded out there, is the large number of high-profile departures from the company since the investment. Former President Mike Capps, Gears of War Producer Rod Fergusson and Design Director Cliff Bleszinski have all left the company, as have Adrian Chmielarz, Andrzej Poznanski and Michal Kosieradzki of Bulletstorm studio People Can Fly, which Epic acquired in 2007.

Tencent operates a number of online multiplayer games through its QQ Games portal and also holds a majority stake in League of Legends developer Riot Games.

Source: Polygon

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Andy Chalk:
enough to give it the right to name two directors to the Epic board.

Andy Chalk:
Tencent spent $330 million on its slice of Epic, but what's really interesting, at least for the conspiracy-minded out there, is the large number of high-profile departures from the company since the investment. Co-founder Mark Rein, Gears of War Producer Rod Fergusson and Design Director Cliff Bleszinski have all left the company, as have Adrian Chmielarz, Andrzej Poznanski and Michal Kosieradzki of Bulletstorm studio People Can Fly, which Epic acquired in 2007.

Wait, are you suggesting that CliffyB et al. pulled a Ben Cheviot? (I've cued it to the start of the scene. Ben's speech starts at 39:30.)

Here is what EPIC needs to do to become relevant again; ditch any and all plans for future Gears games, and focus on a new Unreal Tournament.

How long until a QQ connection is required for always online DRM?

Correction: Mike Capps, not Mark Rein, left Epic in December 2012.

The microtransactions in recent Gears games are starting to make sense now.

EvilChameleon:
Here is what EPIC needs to do to become relevant again; ditch any and all plans for future Gears games, and focus on a new Unreal Tournament.

Unfortunately the market disagrees with you (and me).

As much as I love UT, UT3 bombed badly, five years later it's barely broken a million units sold and it pretty comprehensively killed the series. It's a shame, but the future seems to be made of Gears or an entirely new series.

Well, I for one welcome our new chinese overlords.

Not really. They really abuse riot. Hopefully they won't make the same with Epic.

Formica Archonis:
snip

I applaud you for that referance, bravo.

OT: I'm really wondering what exactly this will do for future epic, but my expectations are pessimistic, corperate meddling into any form of entertainment media has almost always been unintrusive at best and downright disastrous at worst.

Combustion Kevin:

Formica Archonis:
snip

I applaud you for that referance, bravo.

Thank you.:)

Combustion Kevin:
OT: I'm really wondering what exactly this will do for future epic, but my expectations are pessimistic, corperate meddling into any form of entertainment media has almost always been unintrusive at best and downright disastrous at worst.

Well, we live in a world where we're used to large corporations gobbling up and ruining smaller ones like Pac-Man on a pill bender. Shamus Young already covered what happens when a company gets out of touch with its customer base far better than I ever could, so I won't bother belaboring those particular points. It really depends on how much Tencent "gets it" and I'm afraid we won't know that until it's done. If Wikipedia is right, their holdings seem to be predominantly aimed at getting the people of China to buy their virtual currency, so I don't know if that bodes well for the future.

So I guess this is why people have been leaving Epic in droves...

Chineese are using the zerg rush again, in more than one way. Chineese holding Riot games ransom makes sense, LOL feels very asian. next thing you know you can buy those completely ridiculous hair makeups that they seem to love.

Well, epic games have stopped being epic anyway, now we know why.

Strazdas:
Chineese are using the zerg rush again, in more than one way. Chineese holding Riot games ransom makes sense, LOL feels very asian. next thing you know you can buy those completely ridiculous hair makeups that they seem to love.

Well, epic games have stopped being epic anyway, now we know why.

Not sure if racist or just an idiot..

Hey on the upside maybe Tencent can get EPIC to stop treating the PC like a plague and you know actually make games for it again. Drive out a few more of the old guard and we might even get a game that isn't duck and cover shooter please dont' sue us gamesworkshop edition.

Parnage:

Strazdas:
Chineese are using the zerg rush again, in more than one way. Chineese holding Riot games ransom makes sense, LOL feels very asian. next thing you know you can buy those completely ridiculous hair makeups that they seem to love.

Well, epic games have stopped being epic anyway, now we know why.

Not sure if racist or just an idiot..

Or maybe you cant take a joke?

 

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