Chinese Firm Tencent Actually Owns Around Half of Epic Games
A 'minority stake' by about 1.7 per cent.
Remember when Chinese telecommunications firm Tencent made a minority stake purchase of Epic Games last year? Well, it turns out the executives at Tencent have a different understanding of what 'minority' means, as it actually owns 48.4 per cent of the Gears of War studio.
The details came out in financial documents that were revealed for the first time last night. The equity purchase means that Tencent has the power to nominate directors to Epic's board. Which seems to be what it has done, according to an email by studio founder Tim Sweeney to Polygon.
"In June 2012, Tencent made a minority investment in Epic Games, purchasing approximately 48.4 percent of outstanding shares of Epic stock, equating to 40 percent of total Epic capital inclusive of both stock and employee stock options," Sweeney wrote.
"As part of the investment, two Tencent representatives joined Epic's board of directors, in addition to the three directors and two observers appointed by Epic. We're thrilled to have a world-leading partner in Tencent, who gives Epic unique access to the Chinese market as we head into the next chapter of our 21-year history as a leading independent developer."
The stock was purchased for $330 million, and was announced last June. Cliff Bleszinski and Mike Capps resigned from Epic Games late last year, although neither gave any indication that there was a link between their leave and Tencent's stock acquisition.
The details came out in financial documents that were revealed for the first time last night. The equity purchase means that Tencent has the power to nominate directors to Epic's board. Which seems to be what it has done, according to an email by studio founder Tim Sweeney to Polygon.
"In June 2012, Tencent made a minority investment in Epic Games, purchasing approximately 48.4 percent of outstanding shares of Epic stock, equating to 40 percent of total Epic capital inclusive of both stock and employee stock options," Sweeney wrote.
"As part of the investment, two Tencent representatives joined Epic's board of directors, in addition to the three directors and two observers appointed by Epic. We're thrilled to have a world-leading partner in Tencent, who gives Epic unique access to the Chinese market as we head into the next chapter of our 21-year history as a leading independent developer."
The stock was purchased for $330 million, and was announced last June. Cliff Bleszinski and Mike Capps resigned from Epic Games late last year, although neither gave any indication that there was a link between their leave and Tencent's stock acquisition.
Read More Like This