Two Epic Games board members are resigning amid Justice Department antitrust concerns

Two Epic Games board members are resigning amid Justice Department antitrust concerns

Two Epic Games board members have resigned amid concerns from the Justice Department over antitrust concerns.

The DOJ had issues with two members who held positions on the boards of Epic and Tencent, in possible violation of Section 8 of the Clayton Act. Tencent owns a minority stake in Epic and is the parent company of its rival Riot Games. Epic Games said the two board members who resigned were Ben Feder and David Wallerstein.

Tencent has also agreed to amend its shareholder agreement with Epic to waive its unilateral right to appoint directors to its board.

North Carolina-based Epic operates Fortnite, one of the largest games in the world.

Epic Games said in a statement: “Tencent’s two minority voting board members voluntarily resigned from Epic’s board of directors earlier this year based on the U.S. Department of Justice’s expressed concerns regarding Section 8 of the Clayton Act.” We are grateful for her service on the Epic board. Two new independent board members will be nominated by committees of Epic 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 directors of competitors.

Epic Games has become increasingly interesting to Hollywood and traditional media players as Fortnite has evolved into more than just a dominant video game and become a platform with valuable reach. With hundreds of millions of registered users, several million of whom play at the same time, Fortnite has become a venue for movie trailer premieres, concerts and in-game games.

Another Epic division, Unreal Engine, is a 3D graphics tool that is highly valued among game developers.

Disney announced a $1.5 billion investment in Epic Games last February, securing an equity stake. The companies will collaborate on various initiatives aimed at bridging entertainment and technology.

In contrast, Tencent has retreated from its previous interests in Hollywood and refocused on its base in China. His film production and distribution arm, Tencent Pictures, supported Roland Emmerich Moonfall in 2022, but has largely withdrawn from the event film business after being involved in previous years such as tentpoles Poison And Terminator: Dark Fate.

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