Epic Games sells minority interest to Tencent
Epic Games, creator of the ubiquitous Unreal Engine and major franchises like Gears of War and Infinity Blade, announced this morning a minority stake sale to China's Tencent Holdings.
The terms of the deal were not disclosed, but you can be assured it was for a ton of cash (technically speaking). Epic will continue to "operate independently and seek to further expand its game franchises across multiple platforms."
Tencent has slowly made strategic purchases in the States, its highest profile acquisition being Riot Games last year, developers of cash-raining League of Legends.
The relationship between Epic and a Chinese company will also make it easier for the former to grow in China, a region in which it has been very interested in expanding – with some politically laughable results.
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tencent MAKES STRATEGIC INVESTMENT in epic games
Hong Kong, June 19, 2012 – Tencent Holdings Limited ("Tencent" or the "Company", SEHK 00700), a leading provider of Internet and mobile and telecommunications value-added services in China, announces today it has agreed to acquire a minority stake in US-based Epic Games, Inc. ("Epic"), which develops the world's leading 3D game engine technology and award-winning PC, console and mobile game titles.
Following the strategic investment, Epic will continue to operate independently and seek to further expand its game franchises across multiple platforms. The deal is expected to close within one month, subject to customary closing conditions. Terms of the investment were not disclosed.
With more than 20 years in the game industry, Epic has a proven track record of creating cutting-edge games and game engine technology for major platforms. Epic's products and services include the Unreal Engine, the market-leading 3D game engine technology used by many game development studios globally, including Tencent; the billion-dollar "Gears of War" franchise for Xbox 360; the multimillion-selling "Unreal" and "Unreal Tournament" games for PC and consoles; and "Infinity Blade," one of the top-grossing game series for iOS.
"We've developed a huge amount of respect for the Epic team for many years now, as dedicated players of Epic's games and as licensees of Epic's Unreal Engine technology. Epic's deep commitment to quality across all of its games and technologies inspires us. They've been raising expectations in gaming for two decades now and they're just getting started," said David Wallerstein, Senior Executive Vice President of Tencent. "We have a lot that we can learn from each other, and we look forward to supporting the Epic team as they embark on their next phase of gaming innovation across both emerging and familiar platforms."
"Tencent's investment will empower Epic to help us do even more of what we do best, which is making great games and game technology. Their expertise in the global online gaming market is second-to-none, and the opportunity to work with them to bring richer experiences to players all over the world is irresistible," said Epic Games President Dr. Michael Capps. "Epic is excited to be full steam ahead on all of its current plans for this generation of games and the next, with the support of a fantastic partner that believes in our strategy and shares our dream."
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