Chinese tech conglomerate Tencent has acquired a 40% stake in Epic Games, the developer of the popular battle royale game Fortnite, for around $330m in a move analysts have hailed as strategic for both companies. The deal values Epic at around $825m and is expected to give Tencent greater influence as a major stakeholder in the gaming industry while helping Epic expand its presence in China. Tencent already owns stakes in several other gaming companies, including Riot Games and Supercell.
Tencent acquires minority stake in Epic Games
Introduction
Chinese tech conglomerate Tencent has acquired a minority stake in Epic Games, the developer of the popular battle royale game Fortnite.
Details of the deal
The deal, which gives Tencent a 40% stake in the company, is reportedly worth around $330 million. This values Epic Games at around $825 million.
Impact on Epic Games
The investment from Tencent is expected to help Epic Games expand its presence in the Chinese market. Tencent is one of the largest tech companies in China, with a wide range of interests across multiple industries.
Speaking about the deal, Tim Sweeney, the founder and CEO of Epic Games, said: “We’re excited to partner with Tencent, whose company values and entrepreneurial spirit perfectly align with our own.”
Impact on Tencent
The investment in Epic Games further strengthens Tencent’s influence in the gaming industry. The company already owns stakes in several major gaming companies, including Riot Games (creators of League of Legends) and Supercell (creator of Clash of Clans).
Reaction from industry analysts
Industry analysts have hailed the move as a strategic one for both Epic Games and Tencent. It is expected that Tencent’s involvement will help Epic Games expand its reach in the lucrative Chinese market, while Tencent will benefit from the continued success of Fortnite.
According to Daniel Ahmad, a senior analyst at Niko Partners, “Tencent is investing in one of the most successful games on the market right now, and this partnership will give Epic Games access to Tencent’s incredible distribution and marketing resources.”
Conclusion
The investment from Tencent is a significant move for both Epic Games and Tencent. It is likely to bring new opportunities for growth and expansion for Epic Games, while further strengthening Tencent’s position in the gaming industry.