The Chinese giant Tencent owns significant stakes in many gaming companies worldwide, giving the holding the right to appoint its people as observers or full members of their boards of directors. However, Tencent recently had to forgo this opportunity in the case of Epic Games.
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Tencent made this decision following a review conducted by the Antitrust Division of the U.S. Department of Justice. As a result of this review, two directors appointed by Tencent — David Wallerstein and Ben Feder — voluntarily left Epic Games' board of directors.
The department concluded that the presence of Tencent affiliates on Epic Games' board violates U.S. legislation. The issue is that while Tencent holds shares in Epic Games, it is also the parent company of Epic's competitor, Riot Games. This means Tencent may not be impartial when choosing managers.
Wallerstein had been a senior executive vice president at Tencent for 24 years. In January 2024, he left this position to become a senior advisor to the holding. The exact date he joined Epic Games' board is unknown.
As for Feder, he became a member of Epic Games' board in 2017. Feder worked at Tencent from 2016 to 2022 as the head of the North America Partnerships Division.
Epic Games plans to appoint new independent members to the vacated board seats. The shareholders' committee will decide who these new members will be.