Investment enables Chinese firm to nominate directors to the board
Chinese web giant Tencent paid $330 million for a 40 per cent stake in Epic Games in July last year, the company has revealed.
Initially announced as acquiring a “minority stake” in the Gears of War developer last July, Tencent has now disclosed the full details of the investment in its latest financial report.
The $330 million acquisition represented 48.4 per cent of its then issued share capital, which is around 40 per cent of total capital.
The deal means that Tencent has the right to nominate directors to the Epic Games board.
"In June 2012, Tencent made a minority investment in Epic Games, purchasing approximately 48.4 per cent of outstanding shares of Epic stock, equating to 40 per cent of total Epic capital inclusive of both stock and employee stock options," Epic founder Tim Sweeney said in a statement to Polygon.
"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."
Since Tencent’s investment, a number of staff high-profile employees have left the studio, including Cliff Bleszinski and Mike Capps, although it is unlikely the departures are related.