Chinese Corp, Tencent, Takes Minority Stake In Epic Games

[hal]

Chinese mega-corp Tencent has announced intentions in acquiring a minority stake in Epic Games. Tencent looks to be involved in all sorts of internet services and holds many related patents. Epic Games president, Mike Capps, says:

"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. 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."

No doubt Tencent would be an important partner in tapping into gamers all over China. You can read the entire press release in the comments thread.

Update: Tim Sweeney speaks to the North Carolina News & Observer, saying the deal was about opportunity rather than the infusion of cash.

"Epic has always been very profitable," he said. "We often have a hard time figuring out how to deploy the money that we do have efficiently, given the amounts that games like 'Gears of War' and 'Infinity Blade' produce."

Hey Tim, how about using that mountain of cash to make an Unreal sequel for the PC! hint, hint

[hal]

Full press release:


TENCENET 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.”

# # #

About Epic
Epic Games, Inc., based in Cary, North Carolina and established in 1991, develops cutting-edge games and cross-platform game engine technology. The company has created multiple million-selling, award-winning titles in its “Unreal” series, including “Unreal Tournament 3” for PC, PlayStation®3 and Xbox 360®. The first two games in Epic’s “Gears of War” franchise have sold more than 13 million copies and won more than 50 game-of-the-year awards. The third installment, “Gears of War 3,” sold more than 3 million copies within its first week of release, catapulting the franchise beyond $1 billion in lifetime sales. Epic’s Unreal Engine 3 holds more than 20 industry technology awards and powers many bestselling games. Additional information about Epic can be obtained at http://www.epicgames.com.

About Tencent
Tencent aims to enrich the interactive online experience of Internet users by providing a comprehensive range of Internet and wireless value-added services. Through its various online platforms, including Instant Messaging QQ, web portal QQ.com, QQ Game Open Platform under Tencent Games, multi-media social network Qzone and wireless portal, Tencent services the largest online community in China and fulfills user’s needs for communication, information, entertainment and e-Commerce on the Internet.

Tencent has four main streams of revenues: Internet value-added services, mobile and telecommunications value-added services, online advertising and e-Commerce.

Shares of Tencent Holdings Limited are traded on the Main Board of the Stock Exchange of Hong Kong Limited, under stock code 00700. The Company became one of the 43 constituents of the Hang Seng Index (HSI) on June 10, 2008. For more information, please visit www.tencent.com/ir.

Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of Epic and Tencent. These forward-looking statements are based on information currently available to the companies and are stated herein on the basis of the outlook at the time of this announcement. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.

Epic, Epic Games, Gears of War, Gears of War 3, Infinity Blade, Unreal, Unreal Engine, UE3, and Unreal Tournament are trademarks or registered trademarks of Epic Games, Inc. in the United States of America and elsewhere. All other trademarks are the property of their respective owners.

[moonflyer]

Oh my, I didn't see this coming. Based on QQ(IM) platform, Tencent has the biggest online community of China, which somewhat makes it the Chinese "Facebook". And it has the online gaming platform to support mmo and casual games, but I just never thought of Tencent would invest Epic. Epic is way more cooler than Tencent, when talking about making brilliant stuff and technology, but Tencent is basically milking QQ, as the hundreds millions of user can surely bring a lot of money.
Anyway, Epic could use more money to do more cool stuff, that's great! I hope they don't waste time on MMO sort of things, but who knows.

[CyMek]

I love it! Epic says they have more money than they know what to do with, but still find time to b'awwww about how piracy is killing pc gaming and hurts their sales too much. I love it!

[DarkSonny]

I want my beloved UC3 Unreal Or Unreal Tournament Redemption Edition!
So what are they waiting to spend at? Make the paralitic walk! Please!

[DeathBooger]

NEWS FLASH.... Epic games now makes and sells games for ten cents.

[Manticore]

Originally Posted by CyMek

I love it! Epic says they have more money than they know what to do with, but still find time to b'awwww about how piracy is killing pc gaming and hurts their sales too much. I love it!

Not only that but doesn't the Chinese Government (Chinese Democracy ) like to censor the internet and decide which games can be played in country to the extent where a lot of stuff gets banned (unless you arse-lick like Google but maybe that's what Epic intends to do)?

That and piracy coming out of places like China makes this whole deal look slightly ironic... to say the least.

Perhaps Cliffy B should join Guns 'n' Roses...................

[Jacks:SmirkingRevenge]

****in' China.
takin' over the world n ****.

one minority stake at a time...

[Spiney]

With the volatile western financial markets it's not really surprising for a company to take the Chinese on board.

[moonflyer]

Originally Posted by Manticore

Not only that but doesn't the Chinese Government (Chinese Democracy ) like to censor the internet and decide which games can be played in country to the extent where a lot of stuff gets banned (unless you arse-lick like Google but maybe that's what Epic intends to do)?

That and piracy coming out of places like China makes this whole deal look slightly ironic... to say the least.

Perhaps Cliffy B should join Guns 'n' Roses...................

Arse-lick like Google? Come on!
Chinese Democracy, that's a cool song and we share the same feeling in a degree but the mention of Falun Gong...

[moonflyer]

"Epic has always been very profitable," he said. "We often have a hard time figuring out how to deploy the money that we do have efficiently, given the amounts that games like 'Gears of War' and 'Infinity Blade' produce."

Plz think about make Unreal your new Gears, and let Unreal to make more money for ya!

[Manticore]

Originally Posted by moonflyer

Arse-lick like Google? Come on!
Chinese Democracy, that's a cool song and we share the same feeling in a degree but the mention of Falun Gong...

I didn't realise Axl Rose was in the Falun Gong............................

[moonflyer]

So they said there is a PC exclusive game in development. What PC game is beneficial enough if they think the world is full of piracy? An online game. Maybe fps online or arpg online. That sounds reasonable now as Epic can use Tencent's platform to get right into place.
Or, maybe the guys from Big Huge Games can design an ARPG online based on one of Epic's famous IPs. Like Infinity Blade Online?

[Manticore]

[Princess_Die]

all your engine are belong to us.

[Manticore]

Originally Posted by Princess_Die

all your engine are belong to us.

Word.

[q_mi_4_3]

Originally Posted by moonflyer

So they said there is a PC exclusive game in development. What PC game is beneficial enough if they think the world is full of piracy? An online game. Maybe fps online or arpg online. That sounds reasonable now as Epic can use Tencent's platform to get right into place.
Or, maybe the guys from Big Huge Games can design an ARPG online based on one of Epic's famous IPs. Like Infinity Blade Online?

It most likely going to be a F2P game, especially if it is made by Epic's Shanghai studio.