Is Blizzard Still Owned by Tencent? Unraveling the Complex Ownership Landscape
The simple answer to the question “Is Blizzard still owned by Tencent?” is NO. While Tencent once held a minority stake in Activision Blizzard, that stake was relinquished when Microsoft acquired Activision Blizzard in 2022. This means Blizzard Entertainment is now part of Microsoft Gaming, and Tencent no longer has any ownership in the company. However, the relationship between Tencent and the gaming industry is far more intricate and substantial than a single, former investment, with deep ties in many major players. It is this complexity that leads to such a common question. Let’s explore the ownership changes and delve deeper into Tencent’s influence on the gaming world and other sectors to understand why this question remains so relevant.
Blizzard’s Journey: From Independence to Microsoft
For many years, Blizzard Entertainment operated independently, creating gaming franchises like Warcraft, Starcraft, and Diablo that captured the imaginations of millions. It wasn’t until 2008 that a major shift occurred. Activision merged with Blizzard Entertainment to create Activision Blizzard, a gaming behemoth. This merger established a new era for both companies, creating the foundation for their subsequent success.
In 2022, another massive change came: Microsoft’s acquisition of Activision Blizzard for $69 billion. This marked a major move for Microsoft into the gaming industry, bringing iconic franchises under the Xbox banner and ending Activision Blizzard’s independence. The acquisition also included all minority stakes held by other companies, most notably the minority shares of Tencent, meaning that Tencent no longer owns any part of Blizzard or Activision Blizzard.
Tencent’s Expansive Gaming Empire
Although Tencent does not own Blizzard, it maintains a huge presence in the gaming industry through numerous investments and acquisitions. While it might not directly own Blizzard, Tencent is one of the biggest gaming giants in the world, making it a company that people often consider to be a major player in gaming.
Major Gaming Holdings of Tencent
Here are some of the major gaming companies where Tencent holds significant ownership:
- Riot Games: Tencent has full ownership of Riot Games, the developer of League of Legends. This acquisition, finalized in 2015, gave Tencent control of one of the most popular games in the world.
- Supercell: Tencent owns 84% of Supercell, the company behind hit mobile games such as Clash of Clans and Brawl Stars.
- Funcom, Leyou, and Sharkmob: These are wholly owned by Tencent.
- Grinding Gear Games: Tencent holds an 80% stake in the studio behind Path of Exile.
- Epic Games: Though not a majority owner, Tencent owns 40% of Epic Games, the company known for Fortnite and the Unreal Engine.
- Techland: Tencent is set to acquire Techland, the Polish game developer behind open-world zombie titles like Dying Light.
These investments clearly demonstrate Tencent’s deep influence on the gaming industry. They have built their gaming empire by not just creating their own titles, but by buying into a number of existing, highly successful companies.
The Microsoft Acquisition and its Impact
The acquisition of Activision Blizzard by Microsoft was a monumental event in the gaming world. By absorbing Activision Blizzard into the Microsoft Gaming division, Microsoft has made a significant statement of intent. This move also had the direct consequence of ending Tencent’s minority stake in Activision Blizzard. While Tencent is no longer connected with Blizzard through ownership, the sheer scale of their global footprint means they will still have a direct impact on the industry’s future.
The Importance of Understanding Ownership
The ownership of gaming companies is often complex and confusing, and this situation with Blizzard and Tencent highlights how quickly things can change. Understanding these ownership structures is crucial for gamers and industry observers. These shifts can influence game development, business models, and even the direction of the entire industry. While Tencent does not own Blizzard, their vast global gaming empire continues to impact game development and the industry’s future.
Frequently Asked Questions (FAQs)
Here are some of the most common questions surrounding Tencent, Blizzard, and the gaming industry at large:
1. What was the nature of Tencent’s relationship with Activision Blizzard?
Tencent was a minority shareholder in Activision Blizzard, holding shares for almost 10 years before Microsoft’s acquisition. This stake was a purely financial investment, not a controlling interest.
2. Why did Tencent sell their stake in Activision Blizzard?
Tencent was not involved in the deal making, Microsoft’s acquisition of Activision Blizzard meant that all outstanding shares were absorbed by the Microsoft Gaming division, including Tencent’s shares.
3. What companies does Tencent own in gaming?
Tencent has numerous stakes in the gaming industry, including full ownership of Riot Games, a majority stake in Supercell, and significant ownership in many other studios. They are also acquiring Techland, adding to their portfolio.
4. Does Tencent own Epic Games?
Tencent owns 40% of Epic Games, which while not majority ownership, does give them a significant position in the popular company.
5. Is Riot Games owned by Tencent?
Yes, Riot Games is fully owned by Tencent. They gained full ownership of Riot Games, the creator of League of Legends, back in 2015.
6. Does Tencent own any American companies?
Yes, Tencent has stakes in several American companies, including Epic Games, Glu Mobile, Snap, Activision, and Tesla. They often have minority stakes, but these investments are still significant.
7. Is Tencent owned by the Chinese government?
While the Chinese government has a 1% stake in a domestic Tencent unit, Tencent is not owned by the Chinese government.
8. Why is Tencent such a large company?
Tencent is a major player in multiple tech fields, offering e-commerce, cloud computing, entertainment, and internet platforms. Their vast portfolio of investments has driven their success.
9. What is Tencent known for?
Tencent is best known for the WeChat app, the most popular messaging app in China, and also as one of the largest video game publishers in the world.
10. Why did Blizzard leave China?
Blizzard suspended services in China due to a licensing disagreement with their partner, NetEase.
11. Why are people boycotting Blizzard?
Some are boycotting Blizzard for what they see as overly monetized gaming practices, particularly concerning microtransactions in Overwatch 2.
12. Who is the CEO of Activision Blizzard?
Currently, the CEO of Activision Blizzard is Bobby Kotick, who is committed to remain in the position through the end of 2023.
13. Does Tencent own any music streaming services?
Tencent owns a stake in Spotify, holding 8.7% of the total shares.
14. Who are Tencent’s competitors?
Tencent’s major competitors include Alibaba Group, Baidu, and JumpCrew.
15. Why did Tencent invest in Ubisoft?
Tencent invested in Ubisoft to help secure the company’s future and to bolster both companies’ positions in the mobile gaming market.
Conclusion
In summary, while Tencent previously held a minority stake in Activision Blizzard, they no longer own any part of the company. This change was a result of the Microsoft acquisition of Activision Blizzard in 2022, which bought up all outstanding shares. Despite not owning Blizzard, Tencent remains a behemoth in the global gaming industry, with diverse investments across many successful game developers. The company’s impact on the gaming world cannot be overstated, even without Blizzard in their portfolio. Understanding these ownership dynamics is essential for anyone interested in the ever-changing landscape of the gaming world.