Why is Riot still owned by Tencent?

Guy Fox Teemo··1 votes·1,586 views

I thought the reason for them buying out Riot, is so Riot would have the funds to continue to develop League of Legends (And Riot Games in general) and make it the Masterpiece Polished game it is today (It's the most played game in the world).

But I see no reason on why Riot would continue the partnership, (Considering they made over $1,000,000,000 in 2014) Is the partnership necessary to have a server in China? Are they not able to cut loose the agreement?

I can't just help but feel Tecent holds back Riot, by forcing them to monetize the game more (Releasing Skins A LOT more instead of putting resources into other things, such as new modes, maps, new games, etc.) Whether this is true or not , I don't know, but Tencent does take a hefty profit from Riot (90%).

Feel like Riot could further develop their company A LOT more if they lose the ties they have with Tencent (If possible I'm not sure).

But Idk, maybe I'm wrong, maybe Tencent provides a lot for Riot and helps them develop the game and company, but considering the company is from China, seems like they would more then likely be pressuring Riot into making more money, then actually developing their company further.

Thats my personal opinion, I'm not an expert in the business world or how these agreements work. (Whether or not they can actually cut loose ties with Tencent) So please, if I'm completely wrong about this, I'd love to hear why.

Would Love to hear a Rioters Opinion on the Topic. If at all possible

11 Comments

AntiSkillshot3 votes

Is the partnership necessary to have a server in China?

There's your answer. Believe it or not, because of how China works, no outside company is allowed in without being partnered or partly owned by a company that was founded in China.

Archon X2 votes

how would Riot cut ties with Tencent? That's kind of the opposite of how ownership works.

Guy Fox Teemo1 votes

They don't "Own" Riot, but they have a stake of 90%, I'd imagine they would be able to cut the agreement lose somehow. But I'm not an expert in this field so I wouldn't know. They also work independently from Tencent, as in Tencent doesn't manage how they run, but I'd imagine they could pressure them into certain choices, if they start cutting funding.

Faith Breaker2 votes

Money, people at Riot like money.

Guy Fox Teemo1 votes

Cutting ties loose with Tencent would make them a LOT more money, since Tencent has a 90% stake in Riot (Taking $900,000,000)

redniwediS1 votes

Yeah... If it was a partnership they could cut ties. But (in my understanding of the situation) Tencent kind of owns them. Riot can possibly buy themselves back, similar to how Bungie split from Microsoft, but it's possible they wouldn't retain the rights to League of Legends.

I don't know the legal details of the deal, and because it's a legal deal they are likely not going to talk about it.

VasilisGreen1 votes

Why did Tencent buy Riot in the first place?

Guy Fox Teemo1 votes

{quoted}

Why did Tencent buy Riot in the first place?

Was an investment to make money. They're a huge entertainment company in China, they buy out all sorts of companys.

VasilisGreen1 votes

Well, then, if Riot was completely absorbed by tencent, it's not to wonder why the game decays all the time... No matter what the developers want to do, in the end, tencent is the one to decide how the game progresses. Skins, e-sports, everything. Why do you think Riot balances the game around pro play? That's because pro play is a big profit source and so riot has to focus on that. But why did the guys there sell riot? Maybe because that would give them the funds they needed to make Riot the colossus it is today. But, i believe tencent shouldn't interfere with how Riot works with the game...

ViashinoWizard1 votes

Tencent has a very hands-off approach. They basically let Riot do whatever they want.

VasilisGreen1 votes

{quoted}

Tencent has a very hands-off approach. They basically let Riot do whatever they want.

Oh, then Riot fuked up all by themselves??? that's a relief :P

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