TL;DR
- Tencent acquired full ownership of Riot Games through two major investments in 2011 and 2015
- The initial $400 million investment for 93% stake has grown to over $20 billion valuation
- Recent employee share redistribution marks first ownership structure change in over a decade
- Tencent maintains majority control while allowing employee ownership participation
- The partnership has driven massive global expansion, particularly in Chinese markets
Following Microsoft’s acquisition of Activision-Blizzard, gaming enthusiasts worldwide have become increasingly curious about the corporate ownership behind League of Legends, one of the most popular MOBA titles in esports history.
Riot Games, the development studio responsible for creating and publishing League of Legends, operates as a wholly-owned subsidiary of Tencent Holdings Limited. This Chinese technology and entertainment giant maintains complete control over Riot’s operations and strategic direction. However, a significant recent development has emerged: Tencent has initiated a program allowing Riot Games employees to purchase ownership shares, potentially redistributing a small portion of equity to the developers and staff who build the game.
How long has Tencent owned League of Legends?
Tencent’s strategic investment in Riot Games began in February 2011 with a landmark $400 million transaction that secured a commanding 93% ownership stake. From that pivotal moment forward, Riot Games has operated as a Tencent subsidiary, with the Chinese conglomerate’s influence manifesting through various regional adaptations and market expansions.
The acquisition process reached completion in 2015 when Tencent purchased the remaining 7% of Riot Games shares for an undisclosed amount, though industry analysts estimate the final purchase price likely exceeded $100 million based on the company’s growth trajectory. The current valuation of Riot Games exceeds $20 billion, representing an extraordinary return on Tencent’s initial investment and positioning the gaming studio as one of the most valuable properties in the Chinese company’s extensive portfolio.
In a recent corporate statement outlining Riot Games’ strategic direction for the coming years, company leadership revealed plans for a groundbreaking ownership restructuring. This initiative represents the first indication that Tencent might relax its absolute control over a development studio responsible for some of the world’s most successful gaming franchises.
The share conversion program enables Riot Games employees to acquire equity in their employer, though the specific percentage available for redistribution remains undisclosed. Industry observers widely agree that Tencent will retain sufficient shares to maintain its majority shareholder position, ensuring continued strategic oversight while potentially boosting employee motivation and retention through ownership opportunities.
This strategic shift represents a notable departure from Tencent’s traditional approach to subsidiary management and could establish a new precedent for how the corporation manages its gaming studio relationships moving forward.
The concentration of Riot Games’ ownership within a major Chinese corporation like Tencent has prompted discussions among international gamers about the relationship between private Chinese companies and government interests. However, the fundamental answer regarding League of Legends ownership remains unchanged for the foreseeable future.
The collaboration between Riot Games and Tencent has generated tremendous financial returns across global markets, with particularly impressive growth in China where League of Legends has become a cultural phenomenon. The Chinese super server and region-specific features demonstrate how Tencent’s market expertise has shaped the game’s regional adaptations.
Given the extraordinary success of this partnership, there appears minimal incentive for Tencent to alter the current strategic direction. The corporation benefits from Riot’s Western development expertise while leveraging its domestic market knowledge to maximize Chinese player engagement and monetization.
Action Checklist
- Research acquisition timelines for major gaming studios to understand industry consolidation patterns
- Analyze how corporate ownership influences game development priorities and regional adaptations
- Monitor corporate statements for ownership structure changes that could impact game development
- Compare Tencent’s approach with other gaming conglomerates like Microsoft and Sony
No reproduction without permission：Games Guides Website » Who owns League of Legends and Riot Games? We break it down Tencent's complete ownership of Riot Games since 2011 and recent employee share redistribution plans explained