Two board members of Epic Games have resigned amid Justice Department concerns over antitrust concerns.
The DOJ had issues with two members who held positions on the boards of Epic as well as Tencent, in a potential violation of Section 8 of the Clayton Act. Tencent owns a minority interest in Epic and is the parent company to its rival, Riot Games. Epic Games said that the two board members who resigned were Ben Feder and David Wallerstein.
Tencent also has agreed to amend its shareholder agreement with Epic to relinquish its unilateral right to appoint directors to the board.
Epic, which is based in North Carolina, operates Fortnite, one of the largest games in the world.
Epic Games said in a statement, “The two Tencent-nominated Board Directors with minority voting rights voluntarily resigned from Epic’s board of directors earlier this year based on the US Department of Justice’s expressed concerns related to Section 8 of the Clayton Act. We are grateful for their service on Epic’s Board. Two new independent board members will be nominated by committees of Epic’s shareholders.” Tencent did not immediately respond to a request for comment.
Section 9 of the Clayton Act prohibits directors and officers from serving simultaneously on the boards of competitors.
Epic Games has become increasingly of interest to Hollywood and traditional media players as Fortnite has grown into more than just a dominant video game, becoming a valuable reach platform. With hundreds of millions of registered users, several million of whom play concurrently, Fortnite has become a venue for movie trailer premieres, concerts and games-within-the-game.
Another of Epic’s businesses, Unreal Engine, is a 3D graphics tool that has become valued by game developers.
Disney last February announced a $1.5 billion investment in Epic Games, giving it an equity stake. The companies will partner on various initiatives aimed at bridging entertainment and technology.
Tencent, by contrast, has been withdrawing its previous interests in Hollywood, refocusing on its base in China. Its film production and distribution arm, Tencent Pictures, backed Roland Emmerich’s Moonfall in 2022 but has largely pulled out of the event film business after being involved with tentpoles in previous years like Venom and Terminator: Dark Fate.
English (US) ·