Tencent acquires minority stake in Epic Games

Chinese internet and mobile operator Tencent has acquired a minority stake in Unreal Engine maker Epic Games.

Epic has said it will continue to operate independently and continue to expand its game franchise across multiple platforms. Terms of the deal were not disclosed and it is expected to close within one month.

"We've developed a huge amount of respect for the Epic team for many years now, as dedicated players of Epic's games and as licensees of Epic's Unreal Engine technology. Epic's deep commitment to quality across all of its games and technologies inspires us. They've been raising expectations in gaming for two decades now and they're just getting started," said David Wallerstein, SVP of Tencent.

"We have a lot that we can learn from each other, and we look forward to supporting the Epic team as they embark on their next phase of gaming innovation across both emerging and familiar platforms."

Tencent runs a number of online platforms focused on mobile, games and socialising, to the largest online community in China.

Last year it acquired League of Legends developer Riot Games for around $400 million after initially investing in the company.

Mike Capps, Epic president added: "Tencent's investment will empower Epic to help us do even more of what we do best, which is making great games and game technology. Their expertise in the global online gaming market is second-to-none, and the opportunity to work with them to bring richer experiences to players all over the world is irresistible."