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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Matthew Wilson@phx you beat me to it. how do you screw up tetris?! my ubisoft this is just stupid. no one should ever preorder a ubisoft game again! ps people should never preorder any game regardles of dev.12/17/2014 - 6:28pm
PHX Corphttp://www.ign.com/videos/2014/12/17/what-the-heck-is-wrong-with-tetris-ps4 I give up on ubisoft12/17/2014 - 6:01pm
MaskedPixelantehttp://comicbook.com/blog/2014/08/16/exclusive-original-unaltered-cut-of-star-wars-trilogy-to-be-rele/ Yeah, this'll never happen.12/17/2014 - 5:03pm
NeenekoThey have and exercise control over which games are allowed on their privately controlled 'open forum'. Their endorsement is fairly minimal since it is only 'we do not reject this', but it is still an endorsement of sorts.12/17/2014 - 3:58pm
NeenekoHistorically there have been issues with libraries allowing some groups but not others. Perhaps 'endorsement' is too strong a word, but their editorial control IS a preapproval process, even if the standards are pretty minimal.12/17/2014 - 3:56pm
E. Zachary KnightLet's put this a different way. My local library allows any group to reserve and use multipurpose rooms. That does not mean that the Library endorses all events that take place in those rooms.12/17/2014 - 12:54pm
E. Zachary KnightValve's editorial control comes from removing problem games and accepting games to Steam. They make no claim over any games otherwise.12/17/2014 - 12:52pm
E. Zachary KnightNeeneko, It is not at all a form of endorsement. Grenlight is an open forum for game developers to pitch their game to Valve/Steam and Steam users. Does Valve have some editorial control? Yes, but not to the point that they preapprove games.12/17/2014 - 12:51pm
Neeneko@EZK - I disagree. Greenlight is built off Valve's brand. While not an explicit endorsement, it is a form of it, otherwise Greenlight would have no value over other platforms.12/17/2014 - 12:05pm
MaskedPixelantehttp://www.latino-review.com/news/exclusive-viola-davis-bags-amanda-waller-role-in-suicide-squad Latino Review says Viola Davis will be Amanda Waller. History of Latino Review says "wait for a REAL news site to confirm".12/17/2014 - 10:48am
PHX Corphttp://www.polygon.com/2014/12/17/7407869/assassins-creed-unity-glitch-broken-problems-xbox-one-patch -Facepalm- Screwup means Assassin's Creed Unity's patch is the 40GB full game on Xbox One12/17/2014 - 10:17am
PHX Corphttp://www.theverge.com/2014/12/16/7401769/the-mpaa-wants-to-strike-at-dns-records-piracy-sopa-leaked-documents Sony leaks reveal Hollywood is trying to break DNS, the backbone of the internet12/17/2014 - 10:05am
E. Zachary KnightA Game being on Greenlight is not an endorsement of said game by Valve, Steam or anyone related to Valve or Steam. Greenlight is a combined sales pitch to Steam and its users.12/17/2014 - 9:51am
E. Zachary KnightThe Life cycle of a Greenlight game: A game gets made->Developer puts it on Greenlight->Gamers vote for it->Valve decides it is worthy of a Steam release->Game is sold on Steam. While the game is merely on greenlight, it is not available for sale on Steam12/17/2014 - 9:50am
InfophileGreenlight games may in the future be sold through Steam. A game there may be "greenlit" and then sold on Steam proper, or it may not, and never actually be sold on steam. That quote refers to them selecting some games from Greenlight which they will sell12/17/2014 - 9:39am
MechaTama31"Today we’ve Greenlit another batch of 50 titles to advance through Steam Greenlight, and be offered worldwide distribution via Steam." Am I missing something here? Because it sounds like Greenlight games are sold through Steam.12/17/2014 - 9:00am
MechaTama31From the Greenlight page: "Browse through the entries here and rate up the games you want to see made available via Steam"12/17/2014 - 8:59am
MechaTama31Greenlight games aren't sold through Steam? Then what exactly *is* Greenlight?12/17/2014 - 8:58am
prh99I just wish if they are going to curate (as selective and rare as that is) for content, they'd do little for quality (like does this game actually function at all). Personally, I avoid GreenLight and Early Access like the plague because of lax standards.12/17/2014 - 1:34am
prh99EZK: My point wasn't that they are responsible for people's purchase decisions, but that their policies and criteria for approval needs some work. As far as refunds go, you know it's bad when EA has a better policy. EA, former worst company in America.12/17/2014 - 1:21am
 

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