Epic Games Board Shakeup After DOJ Probe

Epic Games Board Shakeup After DOJ Probe

The Justice Department’s investigation into Epic Games and Tencent has led to a significant shakeup in Epic’s board of directors. Two board members, appointed by Tencent, a minority owner of Epic, have resigned.

Violation of the Clayton Act

The DOJ’s Antitrust Division cited a violation of Section 8 of the Clayton Act, which prohibits individuals from serving on the boards of competing companies. This action follows a Justice Department announcement that Tencent is relinquishing its right to appoint future board members to Epic.

Tencent’s Response

Tencent stated their relationship with Epic centers on game development and player experience, expressing their continued commitment to this shared vision. The departing board members, Ben Feder and David Wallerstein, will be replaced by two new independent members nominated by Epic’s shareholders. They will reportedly retain their positions on Tencent’s board.

Ongoing Legal Battles

This board shakeup comes amidst other legal battles for Epic Games. They recently sued a Fortnite tournament cheater and are still in conflict with Apple over app store policies. Tencent also has ongoing negotiations with Ubisoft regarding a potential management buyout.

Key Takeaways:

• Two Epic Games board members resigned following a DOJ investigation.
• The DOJ cited a violation of the Clayton Act.
• Tencent relinquished its right to appoint future board members to Epic.
• Epic faces ongoing legal battles with Apple and a Fortnite cheater.