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 WilsonI cant say anything though I am stupid lucky. I have a 75/75 line01/29/2015 - 11:27pm
Matthew Wilsonthat isnt awful 1.2MBs, but yeah 100bucks a month is over priced to all hell. ps 8mbs=1MBs01/29/2015 - 11:24pm
ZippyDSMleehttp://www.speedtest.net/my-result/410086446201/29/2015 - 9:12pm
ZippyDSMleeMatthew Wilson Dunlap, TN, its the only game in town and they only started in 08 or so.01/29/2015 - 9:12pm
MechaCrashThe explanation for the misanthropy of the character in Hatred comes from "we want to be super edgy and get those controversy dollars."01/29/2015 - 8:34pm
Andrew EisenI'm interested in giving it a try. I think it has some cool ideas but I haven't been "feeling it" when watching continuous gameplay.01/29/2015 - 8:04pm
Matthew Wilsonif you dont know, the code name STEAM demo is out, and it it downloading very slowly. It might be more popular that I thought, or it could just be the eshop.01/29/2015 - 8:02pm
Goth_SkunkPlayer/Playable Character, yes. As opposed to the NPC.01/29/2015 - 7:36pm
Andrew EisenOh, Player Character! Heh, that one took me a few moments!01/29/2015 - 7:29pm
Goth_SkunkIt really bothers me that there is no explanation for the PC's misanthropy. Even the Saw movie series, despite the level of violence in them, had a premise that fascinated me. The only thing about Hatred that fascinates me is the controversy.01/29/2015 - 7:27pm
Goth_SkunkI can't think of a time a game has made me simultaneously want to both buy it and not buy it. On the one hand, I find the premise disturbing and repulsive. On the other hand, I find the controversy fascinating and want to play it just to say I did.01/29/2015 - 7:25pm
Andrew EisenTrailer for new Van Damme movie, Pound of Flesh. "They just stole the wrong man's kidney!" http://vimeo.com/11808880501/29/2015 - 7:24pm
Andrew EisenNew Hatred trailer. Destructible environments, vehicles, light buildings and people on fire! http://www.gametrailers.com/videos/7bzwzs/hatred-devastation-gameplay-trailer01/29/2015 - 7:12pm
Goth_Skunk@WonderKarp: And that's why I don't read or watch mainstream news.01/29/2015 - 5:06pm
Matthew Wilsonzip is it KB or kb? if its KB its MB, if its kb is mb. ether way where do you live that you are getting ripped off that badly?01/29/2015 - 4:41pm
ZippyDSMleeI has a whole 1MB(mb mabye, 1000KBPS) for a whole...100$ a month ;_;01/29/2015 - 4:24pm
WonderkarpFCC appears to be kicking ass today01/29/2015 - 4:11pm
WonderkarpI found this neat. Shows the different ways different websites tell the same story. Not VG Related, but its neat https://i.imgur.com/3m6xOfE.jpg01/29/2015 - 2:12pm
Matthew Wilsonnp I am still suprised that the fcc did it, but I still do not trust the chairman yet.01/29/2015 - 2:11pm
Andrew EisenYeah, what I mean is I'm fortunate enough to live in an area where I have the option of up to 50Mbps if I want to pay for it. Meant that as an anecdote; didn't mean it to come across as a "you're wrong!" Sorry 'bout that!01/29/2015 - 2:06pm
 

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