Does China Own Blizzard? Unpacking the Complex Relationship
The simple answer is: No, China does not own Blizzard. Blizzard Entertainment is an American video game developer and publisher based in Irvine, California. It is now part of Microsoft after their acquisition of Activision Blizzard in 2023. However, the relationship between Blizzard and China is complex, involving partnerships, investments, and recent conflicts that have caused significant disruption. Let’s delve into the details.
The Ownership History of Blizzard
To understand why there is confusion, it’s crucial to look at Blizzard’s history. Originally an independent company, Blizzard later became part of a larger entity.
Merger with Activision
In 2008, Blizzard Entertainment merged with Activision to form Activision Blizzard, a new holding company. This made it one of the largest video game companies in the world.
Tencent’s Minority Stake
In 2013, Tencent, a Chinese multinational conglomerate, invested in Activision Blizzard as a minority investor, acquiring approximately a 5% stake. This investment occurred when Activision Blizzard bought itself from the Vivendi conglomerate. While this investment was substantial, it did not constitute ownership. Tencent was one of many shareholders.
Microsoft Acquisition
In 2022, Microsoft announced its intent to acquire Activision Blizzard for around $69 billion. The deal was finalized in 2023, making Activision Blizzard a part of Microsoft. This acquisition included all shares, even the minority shares held by Tencent. Therefore, Tencent no longer has any ownership stake in Blizzard.
Why the Misconception?
The persistent misconception that China owns Blizzard is likely due to two main factors:
Tencent’s Investment
The investment by Tencent, even though a minority stake, created the impression of Chinese influence. Given Tencent’s massive presence in the gaming world, it led some to believe that it controlled or owned a significant part of Activision Blizzard. It’s important to recognize the difference between minority investment and ownership.
China’s Gaming Market
China is one of the largest gaming markets globally. Many Western gaming companies, including Blizzard, have partnered with Chinese companies to publish their games in China. The perceived power of the Chinese market, combined with a history of complex relationships, has further contributed to this misunderstanding.
Blizzard’s Complicated Relationship with China
Blizzard’s relationship with China, specifically their partnership with NetEase, was crucial for their success in the country.
The Partnership with NetEase
For 14 years, Blizzard partnered with NetEase, a Chinese gaming giant, to publish their games in China, including popular titles like World of Warcraft, Overwatch, and Hearthstone.
The Licensing Dispute
Unfortunately, this long-standing partnership fell apart due to a licensing disagreement. As a result, Activision Blizzard suspended its services and shut down its servers in China on January 23, 2023. Millions of Chinese gamers lost access to these popular titles. This event significantly contributed to the ongoing speculation about China’s role in Blizzard’s operations.
The Current Situation
Currently, Blizzard does not operate its games in China. They are actively looking for a new partner to re-establish a presence, but the path forward remains uncertain.
Key Takeaways
To reiterate:
- Blizzard is not owned by China. It is an American company now under the ownership of Microsoft.
- Tencent was a minority investor in Activision Blizzard for almost 10 years but no longer holds any stake.
- Blizzard’s services are currently suspended in China due to a licensing disagreement with NetEase.
- Blizzard is actively searching for a new partner to bring its games back to China.
Frequently Asked Questions (FAQs)
Here are some frequently asked questions to further clarify the situation surrounding Blizzard and China:
1. Is Activision Blizzard a Chinese company?
No, Activision Blizzard, Inc. is an American video game holding company based in Santa Monica, California. It is now owned by Microsoft.
2. Who is the CEO of Activision Blizzard?
While Bobby Kotick was the CEO of Activision Blizzard through the end of 2023, he has since left the company following the Microsoft acquisition. The current structure of leadership within Microsoft’s gaming division is still evolving.
3. Why did Blizzard shut down its servers in China?
Blizzard suspended its services in China due to a licensing disagreement with their local partner, NetEase. This dispute led to the termination of their partnership.
4. Did Microsoft acquire Activision Blizzard?
Yes, Microsoft has finalized its $68.7 billion deal to acquire Activision Blizzard. This acquisition makes Blizzard part of Microsoft’s gaming portfolio.
5. Does Disney own Blizzard?
No, Disney does not own Blizzard. They acquired Fox in 2019, but that deal is unrelated to Blizzard.
6. Does Tencent currently own any part of Blizzard?
No, Tencent does not own any part of Blizzard anymore. Their minority stake was included in the Microsoft acquisition.
7. What games were affected by the shutdown in China?
The shutdown affected several popular Blizzard titles, including World of Warcraft, Overwatch, Hearthstone, and other games published by Blizzard in China.
8. When did Tencent initially invest in Activision Blizzard?
Tencent’s investment occurred in 2013 when Activision Blizzard bought itself from the Vivendi conglomerate.
9. Is Fortnite banned in China?
Epic Games has pulled the plug on Fortnite in China. This move is part of a broader crackdown on online video games by Chinese authorities.
10. Which country made Blizzard?
Blizzard Entertainment, Inc. is an American company based in Irvine, California.
11. Who was Blizzard’s partner in China?
Blizzard’s long-term partner in China was NetEase.
12. Is Blizzard looking for a new partner in China?
Yes, Blizzard is actively searching for a new partner to bring its games back to the Chinese market.
13. Will Blizzard ever return to China?
While Blizzard is looking for a new partner, there is no guarantee that Blizzard games will return to China. The situation is complex, and the future remains uncertain.
14. Does Microsoft operate in China?
Yes, Microsoft has offered public cloud computing services in China since 2014, and has other products available in the market, despite the complex geopolitical landscape.
15. Does China own Genshin Impact?
No. Genshin Impact is developed by miHoYo, which is a Chinese company, but it is not directly owned or controlled by the Chinese government. Its global publishing is handled by Cognosphere, d/b/a HoYoverse.
In conclusion, while the relationship between Blizzard and China has been complex and involved a significant amount of investment and partnership, Blizzard is ultimately owned by the American company Microsoft and not by China. The current situation highlights the ever-evolving dynamics of global gaming markets and the challenges involved in operating across different cultural and political landscapes.