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China-based Tencent Buys Minority Stake in Epic Games

By - Source: Epic Games Email | B 24 comments

Tencent Holdings has agreed to purchase a minority stake in Unreal developer Epic Games.

Epic Games said on Tuesday that China-based Tencent Holdings Limited has agreed to acquire a minority stake in the U.S.-based developer. The deal is expected to close within one month, subject to customary closing conditions.

"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," Wallerstein added.

Tencent Holdings Limited is a leading provider of Internet and mobile and telecommunications value-added services in China. One of its main services is interactive entertainment which includes the MMOGs Journey to the Fairyland, Dungeon & Fighter, Hero Island and others. It's also the exclusive agent service company for the online free-to-play shooter, CrossFire, in China.

So what does this minority purchase mean for Epic? An extra avenue of funds to make a bigger engine, bigger games. But it also means Tencent Holdings will have some input "in a good way."

"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," Capps added.

Terms of the investment were not disclosed.

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  • -6 Hide
    SmileyTPB1 , June 25, 2012 1:03 AM
    I'm not sure if giving a Chinese company a toe hold in your company is a good idea but if Mike Capps thinks this won't end badly then go right ahead.
  • -2 Hide
    dark_knight33 , June 25, 2012 1:05 AM
    Make a bigger engine? Unreal Engine 3 is already used in countless game, and UE4 is almost here. What exactly will having the input of a chinese company "in a good way" do for an already enormously successful technology company?

    Too many cooks.....
  • 6 Hide
    hoofhearted , June 25, 2012 1:09 AM
    Why not? The Chinese practically own the USA anyway.
  • 1 Hide
    revolution2718 , June 25, 2012 2:03 AM
    How did this article not mention Tencent owns Riot Games of League of Legends fame?
  • 1 Hide
    arlandi , June 25, 2012 2:05 AM
    of course they will only own small minority in Epic Games. It's only ten-cents...
    it looks like they're going to go deeper into mmo in china, and with good relationship with a local company they hope to get into it better than as a foreign/us company.
  • 1 Hide
    kcorp2003 , June 25, 2012 2:12 AM
    hoofheartedWhy not? The Chinese practically own the USA anyway.


    China own 8% of our debt. About 46% is own by other Foreign governments. the rest is own by American people and its government.

    This china owns usa is just a joke in economics gone too far that its making people like you believe it.
  • -1 Hide
    _Cubase_ , June 25, 2012 3:20 AM
    kcorp2003China own 8% of our debt.


    Thanks for clearing that up... and here I was thinking that 8% of $14 trillion was a big deal.
  • 0 Hide
    aftcomet , June 25, 2012 3:40 AM
    _Cubase_Thanks for clearing that up... and here I was thinking that 8% of $14 trillion was a big deal.


    Thanks for clearing that up... and here I was thinking 100% of one dollar was a big deal.
  • 7 Hide
    kcorp2003 , June 25, 2012 3:50 AM
    Reagan debt: $935.1 billion to $2.8 trillion ------(1.865 trillion increase)
    Bush debt: $2.8 trillion to $4.145 trillion ------(1.345 trillion increase)
    Clinton debt: $4.145 trillion to $5.95 trillion-----(1.805 trillion increase)
    Bush debt (two terms): $5.95 trillion to $11.315 trillion----- (5.365 trillion increase)
    Obama debt (one term): $11.315 trillion to +14.294 trillion (of last year 2011) ---- (2.979 trillion increase) might increase further with a second term

    According to my professor about $9.8 trillion is own by american people and government. China holds the highest of all foreign countries.
  • 1 Hide
    aqualipt , June 25, 2012 5:42 AM
    dark_knight33Make a bigger engine? Unreal Engine 3 is already used in countless game, and UE4 is almost here. What exactly will having the input of a chinese company "in a good way" do for an already enormously successful technology company?Too many cooks.....


    i think they want to make the engine as popular as the "Made In China" Stamp :lol: 
  • 1 Hide
    alidan , June 25, 2012 8:14 AM
    dark_knight33Make a bigger engine? Unreal Engine 3 is already used in countless game, and UE4 is almost here. What exactly will having the input of a chinese company "in a good way" do for an already enormously successful technology company?Too many cooks.....


    china wont be able to merssesly pirate the tech?

    kcorp2003China own 8% of our debt. About 46% is own by other Foreign governments. the rest is own by American people and its government. This china owns usa is just a joke in economics gone too far that its making people like you believe it.


    yea, 8%... thats what, over 1 trillion$... if they call the debt they would collapse out economy, they really do own us, and its why when they do something really bad, we never call them out on it. they have a gun to our heads, and tell us to look the other way or else.

    kcorp2003Reagan debt: $935.1 billion to $2.8 trillion ------(1.865 trillion increase) Bush debt: $2.8 trillion to $4.145 trillion ------(1.345 trillion increase) Clinton debt: $4.145 trillion to $5.95 trillion-----(1.805 trillion increase) Bush debt (two terms): $5.95 trillion to $11.315 trillion----- (5.365 trillion increase) Obama debt (one term): $11.315 trillion to +14.294 trillion (of last year 2011) ---- (2.979 trillion increase) might increase further with a second term According to my professor about $9.8 trillion is own by american people and government. China holds the highest of all foreign countries.


    when you are talking about big numbers like that, you also have to take into account the value of the $ at the time, and how many policies are run overs from the previous president, other than that, good summary.

  • 1 Hide
    kcorp2003 , June 25, 2012 9:22 AM
    @alidan

    if china calls in the 8% of our debt. That 1.2 trillion dollars means our money value drops to a lower point thus causing an international markets collapse = a domino effect that will kill china market of cheap export to the US. They purposely trying to keep their money lower than us. Incase they do call in the money that means U.S. starts to buy US made products instead = a slowly building giant with a better system. China wants to own more debt because its a good trade business for them to export things cheap to us. and if our money value drops that means the debt they have on us is of no value to them.

    China is playing a nasty strategy that won't work for long.


    also from my previous post i didn't adjust for inflation but if it was adjusted then it would be the same in 2001- before The 911 accident, that's like knocking off 1.8 trillion.
    Two things to blame are Fuel and loans.
    Evil overlords = corporates like Fannie and Freddie
  • 2 Hide
    icemunk , June 25, 2012 9:29 AM
    kcorp2003Reagan debt: $935.1 billion to $2.8 trillion ------(1.865 trillion increase) Bush debt: $2.8 trillion to $4.145 trillion ------(1.345 trillion increase) Clinton debt: $4.145 trillion to $5.95 trillion-----(1.805 trillion increase) Bush debt (two terms): $5.95 trillion to $11.315 trillion----- (5.365 trillion increase) Obama debt (one term): $11.315 trillion to +14.294 trillion (of last year 2011) ---- (2.979 trillion increase) might increase further with a second term According to my professor about $9.8 trillion is own by american people and government. China holds the highest of all foreign countries.


    China is just an investor in American bonds (less so lately). They are just essentially a board member who have a minority stake and say. However, if they happened to pull their stock and sell their bonds, this could trigger a largescale collapse of the USD value and severely harm the US imports, as your money would suddenly become worth less. China would not do this however, because they rely on the US to purchase a large part of their exports.
  • 0 Hide
    nhat11 , June 25, 2012 12:35 PM
    My only hope Tencent will make their games with the UE3 instead of some crappy engine that they created.
  • 1 Hide
    DryCreamer , June 25, 2012 1:44 PM
    China's domestic market is still growing, once it matures, they won't need the American market as much any more...

    Dry
  • 0 Hide
    kcorp2003 , June 25, 2012 2:51 PM
    DryCreamerChina's domestic market is still growing, once it matures, they won't need the American market as much any more...Dry


    For that to happen the population of china needs to be in check with enough trade to other countries. Or all that factory workers will be on the street. So that why china is moving towards innovation (technology) like Japan. Slowly getting rid of factories. That will take about 3 to 4 decades. And they are pretty smart at it. Sending their children to america to study (cheaply) and return to homeland china and compete with american innovation. Oh not to mention all the hacking and secret tech they steal from us.
  • 2 Hide
    Andy Chow , June 25, 2012 3:01 PM
    Instead of always viewing China as an enemy maybe some of you might start looking at them as a partner. In a partnership, you own some of their debt, they own some of your debt. You trade and both reward from the transactions.

    I think if the US keeps disrespecting China year after year, complaining about stupid things like "religious freedom" instead of concentrating on important things like the economy (you know, what actually makes things go round), eventually they will get fed up with us. Do you really want China as an business competitor or as a business partner?
  • 0 Hide
    kcorp2003 , June 25, 2012 3:37 PM
    Andy ChowInstead of always viewing China as an enemy maybe some of you might start looking at them as a partner. In a partnership, you own some of their debt, they own some of your debt. You trade and both reward from the transactions.I think if the US keeps disrespecting China year after year, complaining about stupid things like "religious freedom" instead of concentrating on important things like the economy (you know, what actually makes things go round), eventually they will get fed up with us. Do you really want China as an business competitor or as a business partner?



    Andy Chow... i figure your Asian. we don't see China as our enemy (some may do, the ones that lost their job). we want fairness. If you truly understand for years the american people are losing jobs @ 9% rate. It's the unfair trade practices

    The Chinese government is a currency manipulator and they steal intellectual property. we are trying to find a common ground with you. But nothing won't change. The system will continue like this.

    My senator said, "They use the rules of free trade when it benefits them and spurn the rules of free trade when it benefits them. And for years and years and years, Americans have grimaced, shrugged their shoulders but never done anything"
  • 1 Hide
    eddieroolz , June 25, 2012 3:44 PM
    Andy ChowInstead of always viewing China as an enemy maybe some of you might start looking at them as a partner. In a partnership, you own some of their debt, they own some of your debt. You trade and both reward from the transactions.I think if the US keeps disrespecting China year after year, complaining about stupid things like "religious freedom" instead of concentrating on important things like the economy (you know, what actually makes things go round), eventually they will get fed up with us. Do you really want China as an business competitor or as a business partner?


    I think it becomes difficult for all foreign companies to compete in China since it isn't a free market. Chinese government imposes a lot of restrictive laws to protect their home industry. This has been well known and well-studied, and is a point of contention between all foreign governments and China.

    There's also the nature of many Chinese firms to completely disregard intellectual rights. The Chinese high-speed rail project is one such example, with a mish-mash of IP and patents copied outright from Siemens, French TGV and Japanese Shinkansen. So for foreign companies to "partner" with a Chines firm is like handing over the keys to your house.

    Of course, being such a large market, China is irresistible for most companies, especially when the Western markets are reaching a plateau.
  • 0 Hide
    alidan , June 25, 2012 6:14 PM
    kcorp2003@alidan if china calls in the 8% of our debt. That 1.2 trillion dollars means our money value drops to a lower point thus causing an international markets collapse = a domino effect that will kill china market of cheap export to the US. They purposely trying to keep their money lower than us. Incase they do call in the money that means U.S. starts to buy US made products instead = a slowly building giant with a better system. China wants to own more debt because its a good trade business for them to export things cheap to us. and if our money value drops that means the debt they have on us is of no value to them. China is playing a nasty strategy that won't work for long. also from my previous post i didn't adjust for inflation but if it was adjusted then it would be the same in 2001- before The 911 accident, that's like knocking off 1.8 trillion. Two things to blame are Fuel and loans. Evil overlords = corporates like Fannie and Freddie


    you are thinking of it as someone who is rational, however i'm betting that if the usd looses value, even than, it would hurt china fall less than us.

    look at it as a kind of mad (mutually assured destruction) china does allot of crap that if it was any other country, we would be at least complaining diplomatically, but we shut up because of what fall out could come from it.
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