Riot Games bought out by Tencent

Post by ahstilde » Fri, Dec 18, 2015, 6:16 PM UTC

Post by oblio » Fri, Dec 18, 2015, 6:16 PM UTC

ahstilde wrote: post #2

It's unfortunate that Riot is now owned by a non US firm.

Post by dogma1138 » Fri, Dec 18, 2015, 11:20 PM UTC

huac wrote: post #5

anujanpan wrote: post #3

Tencent had already owned 92% of Riot Games, this was just for the remaining 8%.

Interestingly, it means there's no more Riot stock. So for employees, share based performance incentives now can only be paid in cash. It sounds like a net benefit to employees - they get a liquidity event and their future bonuses/compensation are more predictable (esp since Riot was never going to IPO).

Post by huac » Sat, Dec 19, 2015, 12:41 AM UTC

dogma1138 wrote: post #6

huac wrote: post #5

Earlier quoted context omitted.

Interestingly, it means there's no more Riot stock. So for employees, share based performance incentives now can only be paid in cash. It sounds like a net benefit to employees - they get a liquidity event and their future bonuses/compensation are more predictable (esp since Riot was never going to IPO).

That's not how stocks work there are different types/classes of stock and different types of options. They can still give employees non voting stock and issue ESO's. It's quite rare to issue full equity with voting rights to employees. ESO's generally have quite strict vesting and are non-transferable so this is pretty much a company wide ETO incentive bonus.