Tencent Takes Majority Stake in League of Legends Developers

February 7, 2011 -

On late Friday, China-based Tencent Holdings announced that it had acquired a majority stake in Riot Games, makers of League of Legends - a DOTA-style online multiplayer game. Riot Games CEO Brandon Beck talked to Gamasutra about the deal extensively, revealing what his company expects to happen under the auspices of the Chinese company known for its diversified operations including instant messaging services, social networking, and online games. According to some reports, in 2010 Tencent held a 20 percent market share in the online games space.

Beck tells Gamasutra that the deal is "technically" an acquisition - in that Tecent now holds a "majority stake" in the company- but that he does not expect that Riot will become the U.S. operations. He also adds that Riot Games will remain independent of its new majority stakeholder, allowing it to continue to develop and grow its popular online game.

"Riot is going to remain completely independent. There are no redundancies, no layoffs, no synergy fishing, no leadership change," Beck said. "Nothing is going to change other than they're dramatically increasing their holding in the company. They see this more as an investment in a partner."

"We've been working together for a long time -- over two years," he continued. "Tencent and Riot share a view of the game industry. As important as technology and IP is, the most important thing in the industry are the people and the talent, particularly when you're trying to innovate and trailblaze. To keep people exited, motivated, hungry to succeed, and maximize creativity, you have to have a really independent and autonomous structure."

Of course, Tencent might see the great potential that a game like League of Legends has in China. By owning more of the company that makes it, Tencent earns more profits in the long run and makes setting up deals for creating pro-gaming leagues and televising events in the region a lot easier.

On a side note, AllThingsD reports that Tencent will end up paying a little less than $400 million to buy out other investors such as Benchmark Capital and FirstMark Capital. These investors, along with "angel investors," have reportedly invested around $18 million into Riot.

Source: Gamasutra


 
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ConsterOh look, a GoFundMe campaign for Memories Pizza is almost at 50k already. Never assume people can't rally behind a bigoted cause just as well as behind a non-bigoted cause.04/02/2015 - 4:49am
Andrew EisenThe multiple Fire Emblem versions might be more complicated than we thought. http://kotaku.com/japans-new-fire-emblem-has-four-versions-is-crazy-169515313004/02/2015 - 1:29am
ZippyDSMleeWhere is "Yes, if it was monetized." In the questions?04/01/2015 - 9:07pm
E. Zachary Knighthttp://reason.com/blog/2015/04/01/this-anti-gay-pizza-place-got-trashed-on04/01/2015 - 8:17pm
E. Zachary KnightAccording to this link, the pizzeria owner did not actually refuse anyone service. He was ask by a reporter if he would cater to a gay wedding and he answered in the negative. When that was published, the rants came rolling in.04/01/2015 - 8:17pm
Papa MidnightCorrection to my prior note, DiRT 3 Complete Edition does NOT replace DiRT 3 in user's libraries. But existing owners of DiRT 3 do get it for free.04/01/2015 - 8:00pm
Matthew Wilson@AE it could be like pokemo, but the tweet and the site makes it look like 2 different games. tbf I do not know Japanese.04/01/2015 - 7:29pm
MechaCrashInteresting how YouTube comments are universally acknowledged to be cesspits of idiocy where no coherent thought can survive, until a woman closes them. Then it's CENSORSHIP and being AFRAID OF DEBATE.04/01/2015 - 7:29pm
Andrew EisenThat's... weird. The Direct made it sound like this was an organic part of a single game.04/01/2015 - 7:08pm
Matthew Wilsonapparently the 2 sides of the story in the new fire emblem game is 2 difrent games in japan, and we are getting both combined. https://twitter.com/RPGSite/status/583415770744393729/photo/104/01/2015 - 7:00pm
MonteAE: there are pizzaria's that also make italian food which you can order in bulk to cater parties. Also, google pizza wedding; cause it is pretty cool04/01/2015 - 6:50pm
ConsterThe vast majority of (if not all) 1-star reviews are angry rants about its policy. 'Jesus said to love thy neighbor, assholes' (paraphrased) seems very common.04/01/2015 - 6:49pm
Matthew WilsonI did not check it out personaly. I only read a arctlice about it, but it does seem to be in a lets just say a very mean way.04/01/2015 - 6:41pm
Andrew EisenTrashed in a fair way or are people lying about cockroach infestations and stuff?04/01/2015 - 6:24pm
Matthew Wilsonwell they also are getting trashed on yelp too. given the number of people that use it, I suspect they will lose allot of business even if they change their mind.04/01/2015 - 6:19pm
Andrew EisenIt's a pizza joint. It caters weddings? Really? I mean, that's cool. Really cool, even. But seriously?04/01/2015 - 6:02pm
Consterhttp://www.huffingtonpost.com/2015/04/01/indiana-pizza-gay-couples_n_6985208.html04/01/2015 - 5:57pm
Andrew EisenConster - Link?04/01/2015 - 5:55pm
Conster-annnd they are 'temporarily closed' after phone threats. Way to take the moral high ground against bigotry, people. -,-04/01/2015 - 5:51pm
ConsterThe first business to use SB101 to deny service to gay weddings has arisen - let's see if EZK's theory about the free market being sufficient to deal with them holds u-04/01/2015 - 5:50pm
 

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