Does Tencent Own Fortnite?
Introduction
Fortnite, one of the most popular battle royale games globally, has been a topic of discussion and controversy regarding its ownership and Tencent’s involvement. In this article, we’ll dive into the details of whether Tencent owns Fortnite and what that means for the gaming community.
The Connection: Epic Games and Tencent
Boldly stated: Epic Games, the developer and publisher of Fortnite, does not entirely own the game. Tim Sweeney, the co-founder and CEO of Epic Games, holds more than 50% of the company, while Tencent holds a 40% stake in Epic Games, acquired in 2012. (1)
Ownership and Stake
| Entity | Percentage Stake |
|---|---|
| Epic Games (Tim Sweeney) | >50% |
| Tencent Holdings | 40% |
Fortnite: A Global Phenomenon
Fortnite’s global success cannot be overstated. Released in 2017, the game quickly gained popularity, attracting millions of players worldwide. (2) With its unique gameplay and cartoonish visuals, Fortnite transcends traditional gaming genres and demographics. (3)
Fortnite’s Revenue and Growth
As a result of its massive success, Fortnite’s revenue has skyrocketed, generating millions of dollars in revenue each year. In 2019, Fortnite’s revenue exceeded $5 billion, solidifying its position as one of the highest-grossing games globally. (4)
Tencent’s Investment Portfolio
Tencent, as one of the largest gaming companies in the world, has an impressive portfolio of investments. Their shareholding in Epic Games is merely a fraction of their overall investment strategy.
| Company | Percentage Stake |
|---|---|
| Riot Games (League of Legends) | 100% |
| Activision Blizzard | 5.1% |
| PUBG Studios | Unknown % |
| Krafton (Battlegrounds) | 13.5% |
| Roblox | 3.7% |
Tencent’s Acquisition of Krafton
Tencent acquired a 13.5% stake in Krafton, the company behind PUBG, through a secondary share sale. (5)
Conclusion
In conclusion, Tencent holds a 40% stake in Epic Games, while Tim Sweeney, the co-founder and CEO of Epic Games, maintains more than 50% of the company. This ownership structure is essential for Fortnite’s continued success, allowing the developers to maintain creative control and revenue shares. The game’s global phenomenon is undeniable, with Fortnite’s massive revenue and growth cementing its status as a gaming giant. Additionally, Tencent’s diverse investment portfolio is indicative of their commitment to the gaming industry’s future.
References:
- https://www.vintageisthenewold.com/faq/Does-Tencent-own-Epic-Games
- https://www.gamesindustry.biz/articles/2021-07-28-fortnites-player-base-crosses-500-million-mark
- https://www.ign.com/articles/fortnite-review
- https://www.statista.com/statistics/1113546/fortnite-revenue-worldwide-2019
- <https://www.reuters.com/article/ Riot-games-tencent/hidpi- Riot-games-parent-co- Tencent-holds-nearly-15-of-bidirectional-2021-06-12>
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