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 Wilsonit wouldnt hurt to ask though10/23/2014 - 4:17pm
Andrew EisenThe problem doesn't seem to be OBS specifically, I can't anything to work.10/23/2014 - 4:16pm
Matthew Wilsonobs has a support irc if you want help10/23/2014 - 4:15pm
Andrew EisenWhat gets me is this worked fine last year. Same PC, same capture hardware, same broadcaster.10/23/2014 - 3:58pm
Andrew EisenWish I knew where the problem was so I could fix it.10/23/2014 - 3:55pm
Andrew EisenMaybe the fact that TWC throttles my upload speed to 1 Mbps is why I've been having so much difficulty live streaming. Then again, the podcast works fine.10/23/2014 - 3:52pm
PHX Corp@Neo_DrKefka @quiknkold agreed, I think everyone needs to just STFU and play Video Games. If the behavior(between #GG and #SGG2014) continues, it's going to eventually affect the Videogame industry negatively(Lost Sales, etc.)10/23/2014 - 3:50pm
Neo_DrKefkaIn a #GamerGate Stream https://www.youtube.com/watch?v=Nd-BahVyFYQ they are too busy talking about Brianna's Wu appearance rather than her actions. Oh god our movement has become less and less about solutions and how can we can resolve these problems.10/23/2014 - 3:28pm
quiknkoldThese people are Arms Dealers selling weapons to both sides of this war, and I feel the only way anything will change is if everybody just stops. CTFO and play games.10/23/2014 - 3:28pm
quiknkoldI'm not specifically Targeting the Gamergate people on this. But There is one or two sick Freaks out there who get their jollys on this, and they are fueled by the war they are making worse.10/23/2014 - 3:27pm
prh99How much longer can the charade continue, the extremists have driven out the majority of people that thought it was about ethics. All that's left are the hooligans.10/23/2014 - 3:25pm
quiknkoldneeds to never happen again10/23/2014 - 3:20pm
quiknkoldand really I just stoped giving a damn about those articles, because the opinions of 7+ Articles does not change the fact that I am a Gamer, That I love Games, and that I am a decent hard working Human Being. And what happened to Felicia Day, who I adore,10/23/2014 - 3:20pm
quiknkold2 reasons why I originally joined gamergate. 1: I didnt like the 7+ anti gamer articles. 2 : I thought there was real newsworthy stuff pouring out of it like the stuff involving Phil Fish. As time went by, I saw no real fruiit10/23/2014 - 3:19pm
quiknkoldcalling for a #ceasefire. cause seriously, people on both sides need to just stop, step back to their corners, and relax for a little and just not deal with this. if something happens, fine, break out the bs again. But I will not stand idle by anymore.10/23/2014 - 3:18pm
james_fudgeQuiknkold: I was sad to see that happened.10/23/2014 - 3:13pm
quiknkoldthis arguement has become utter BS and I will not stand by when somebody who posts her own fears has those fears become true10/23/2014 - 3:10pm
quiknkoldWith Felicia Day's Doxxing, I am officially against Gamergate now. Calling for a #Ceasefire on twitter. This 'crap' needs to end now. Its BS that this happened.10/23/2014 - 3:09pm
Matthew Wilsoncrt's ran over 60 fps. its just publisher choosing graphics over gameplay10/23/2014 - 3:03pm
prh99MW: I'd tend to agree. When most tv's these days are 60Hz+ LCDs, a 30fps lock seems like a relic from the CRT TV days.10/23/2014 - 2:59pm
 

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