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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NeenekoAh, that old straw man. That is one of the ironies about the discussion, the whole point is showing how good people can still have problems with sexism and not realize it.09/17/2014 - 9:11pm
Andrew EisenYes, there have been a handful of op-eds suggesting that the term “gamer” has become tainted (two that I know of) but that’s the opinion of only a few. I've seen an equal number from those who disagree.09/17/2014 - 8:55pm
Andrew EisenExcept, you haven't provided a single example of a site that’s actually calling gamers a "collective of Sexist White Bigoted Basement Dwelling Manchildren."09/17/2014 - 8:55pm
TechnogeekIf you want to make the stereotype of gamers less painful, try calling people out when they do bad shit rather than handwave it away as "not all gamers". Even if it is a few bad apples, that'll still more than enough to spoil the barrel.09/17/2014 - 8:53pm
quiknkoldI'm not going to Sell Gamergate anymore. It can sell itself. But I will sell the integrity of the Gamer. That we are still good people, who create and donate to charitys, Who engage with those around us and just want to have a good time.09/17/2014 - 7:35pm
quiknkoldpeople should not be harrassed and punished for the actions of a few. I've always welcomed and accepted everybody who wanted to join in. Who wanted to make them, or play them. I love good strong female protagonists, and want more.09/17/2014 - 7:35pm
quiknkoldOne of the tennants of Gamergate is to stand up against Harrassment. That Gamers arent like those assholes. We can argue for days if the Sexism or Antifeminism or corruption is there or not, But the one thing I believe in and wear on my sleave is that09/17/2014 - 7:35pm
quiknkoldBut there were these websites, attacking me and people like me, for the actions of a few. and then others joined in on Twitter and other places. there was a hashtag that said "explain in 4 words a gamer" and it made me sick.09/17/2014 - 7:35pm
quiknkoldManchildren who are awful people and that the Identity of the Gamer should die. This hurt me personally. I've always identified as a Gamer. Even in my childhood years, I was a Gamer. All my friends are Gamers. Its one of the core parts of my identity.09/17/2014 - 7:34pm
quiknkoldUltimately, With the whole Gamergate thing, I jumped on it due to the harassment. A small number of assholes harrass Anita and Zoe, and then all the publications lumped together Gamers as this collective of Sexist White Bigoted Basement Dwelling09/17/2014 - 7:34pm
quiknkoldEZacharyKnight : Lemme ask you a question. We have people who cling to walls, people who fire lasers from their eyes, people who can shapeshift....and yet fabric needs to be upheld to RL physics?09/17/2014 - 6:54pm
james_fudgebody paint?09/17/2014 - 5:33pm
E. Zachary Knightquiknkold, I stand corrected on the buttcrack thing. Still, I know of no fabric that actually does that.09/17/2014 - 5:05pm
Andrew EisenSo... it's unethical to discuss the ethics surrounding public interest vs. personal privacy?09/17/2014 - 4:45pm
prh99The source for the game was just released not long ago, it's at https://github.com/keendreams/keen09/17/2014 - 4:43pm
prh99An Indiegogo champagin bought the rights to the early 90's game Keen Dreams to make it open source and release it on GOG etc. https://www.indiegogo.com/projects/let-s-get-keen-dreams-re-released-legally09/17/2014 - 4:42pm
james_fudgeAlso http://www.breitbart.com/Breitbart-London/2014/09/17/Exposed-the-secret-mailing-list-of-the-gaming-journalism-elite09/17/2014 - 4:29pm
Andrew EisenI read the Kotaku story. Nowhere does it say anything close to "Gamers are white bigoted sexist losers." It's commenting specifically on the crap being slung at people discussing gender issues in games. So, what's the problem?09/17/2014 - 4:06pm
Andrew EisenYeah, I can imagine Spiderwoman posed like in your second link.09/17/2014 - 4:00pm
Andrew EisenThat's not the same pose. Spiderman (who is wearing an actual outfit rather than body paint) is crouched low to the ground. Kinda like a spider! Spiderwoman has her butt up in the air like she's waiting to be mounted.09/17/2014 - 3:59pm
 

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