We’ve covered the exodus from Epic Games already (here, here and here) and I’ve always wondered if it is in relation to another company taking over Epic Games. We do know that the Chinese company, Tencent, bought a minority shareholding last June but what we didn’t know is that the word minority was very misleading.
According to the latest Tencent financial statements it currently owns a technically minor holding of 48.4% of Epic Games and has placed two of it’s members on the Epic board.
Epic have 3 directors on the board and two observers so they still control the company but with a 1.6% margin it’s quite obvious that Tencent can wield a lot of influence in the boardroom and as such has a huge say in the direction the company will move in.
So is this why all the big names have jumped ship? Were they feeling constrained by the Chinese pressure being placed on them?
Only time will tell I guess.
Last Updated: March 22, 2013
Jonah Cash
March 22, 2013 at 11:24
How much stock is those two board members aloud to own as employee stock options? Cause if it is 1% each, then I see a RED moon rising at Epic….
Mark
March 22, 2013 at 11:43
Naspers owns a 46.5% stake in Tencent…. Does this effectively mean they own +/-22.5% of Epic Games?
Jim Lenoir (Banana Jim)
March 22, 2013 at 11:57
lol yes!
Mark
March 22, 2013 at 12:13
Who would of thought that a South African multi-national company owns a pretty significant stake in a huge international gaming company!? Not such a gaming back water after all!!! I bought a few shares of Naspers a couple of years ago… didn’t even realise I effectivley own a bit of Epic 🙂 Even if it is a microscopic little piece….
Rez61
March 22, 2013 at 18:24
The official number is Napers owns 34.3% of Tencent so it is effectively owns about 16%. Since Tencent is effectively a majority stakeholder of Epic, the extent of Naspers control would be determined by the sway they hold on the Tencent board.
Rez61
March 22, 2013 at 18:29
The official number is Napers owns 34.3% of Tencent so it is effectively owns about 16%. Since Tencent is effectively a majority stakeholder of Epic (We don’t know the remaining holding structure but unless there is only 1 other shareholder it is pretty significant), the extent of Naspers control would be determined by the sway they hold on the Tencent board.
The interesting question is who sold their holding to Tencent in the first place. What if Capps and CliffyB sold their share on a nice premium so they could take some time out of the industry rather than the forced out scenario everyone is playing out for them.
Jim Lenoir (Banana Jim)
March 22, 2013 at 11:57
That’s really not that surprising, since a number of Chinese companies have considerable stakes in US and even European companies now. Some of the biggest law firms in the states are now effectively chinese-owned, the US owes China billions, and while the average citizen in the states still believes that “the US is number 1”, China, once called the sick communist of Asia, has beaten capitalism at its own game.
Of course, whether China can maintain its standing is an issue of debate, since essentially their economy is run like a ponzi-scam, and that in itself is not sustainable.
Darth_Clericus_The_Ultimate
March 22, 2013 at 12:08
Can I just say that the header pic is a total turnon……sorry just thought it should be said.
Blackhawk
March 22, 2013 at 13:33
You and me both, buddy.
FoxOneZA
March 22, 2013 at 12:16
I don’t see what’s the issue with having the Chinese onboard. America basically lives off the sweat off China. Apple being a fine example with their Made in the USA campaign. Their Mac and iPhone components still come from China.
Two fine Chinese companies such as Huawei and HiSense engineer, develop and assemble products that offer better value for money than anything from Apple and Samsung whilst embracing a Western influence like Android as such.
OVG
March 22, 2013 at 13:02
mmmmmmmmmm 🙂