Chinese technology giant Tencent Holdings has acquired a large stake in popular video game studio Epic Games, maker of Fortnite, but the amount invested was not disclosed. The deal is another example of Tencent’s push into the worldwide gaming industry, where it has been aggressively investing in and buying up related firms. Epic Games’ flagship offering had over 350 million registered players as of May 2020. While founder Tim Sweeney declared the aim was to bring Fortnite “to more players around the world”, the move has provoked concern over the influence of Chinese companies on the global gaming scene.
Tencent Acquires Major Stake in Gaming Company Epic Games
Introduction
Chinese technology giant Tencent Holdings Ltd. has acquired a major stake in Epic Games, the studio behind popular video game Fortnite. The announcement was made by Epic Games on their official website.
Acquisition Details
The amount and percentage of the stake that Tencent acquired were not disclosed. However, according to a report from The Wall Street Journal, sources familiar with the matter said that Tencent acquired roughly 40% of Epic Games. This would make Tencent the second-largest shareholder in the company after Tim Sweeney, Epic Games’ founder and controlling shareholder.
Reasons for the Acquisition
Tencent has been aggressively expanding its presence in the gaming industry. The company has been investing in and acquiring gaming companies around the world. Tencent’s acquisition of a major stake in Epic Games is another example of their commitment to the gaming industry.
Epic Games is one of the top gaming companies in the world, with its flagship game Fortnite having more than 350 million registered players as of May 2020. Tencent’s investment in Epic Games gives the Chinese company access to one of the hottest gaming properties in the world.
Reaction to the Acquisition
The news of Tencent’s acquisition of a major stake in Epic Games has been met with mixed reactions. Some see it as a win-win situation for both companies, while others are concerned about the rising influence of Chinese companies in the global gaming industry.
Tim Sweeney, founder of Epic Games, said in a statement, “We’re excited to partner with Tencent to bring Fortnite to more players around the world and to enhance our business as we push into new frontiers in gaming.”
Future Plans
Tencent’s acquisition of a major stake in Epic Games is expected to strengthen the relationship between the two companies. Epic Games will continue to operate independently, but Tencent’s expertise and resources will undoubtedly help the studio in its future endeavors.
Both companies are expected to work closely together to bring Epic Games’ popular games to more players around the world.
Conclusion
Tencent’s acquisition of a major stake in Epic Games is a major move in the gaming industry. It is also an affirmation of Epic Games’ position as one of the top gaming companies in the world.
As Tencent continues to expand its presence in the gaming industry, it remains to be seen whether its growing influence will be a force for good or cause for concern.