Court documents show that Google executives had proposed to partner with Tencent to acquire EPIC
The dispute between the well-known game developer EPIC and Google has now reached the trial stage. Although Google requires many documents to be kept confidential, the court still made them public.
These public court documents also let us, ordinary consumers, understand the secret wars in the business field, including certain business practices that are achievable but not ethical.
The latest public documents show that Google is very unwilling to continue fighting with EPIC in the field of antitrust. Of course, Google is unwilling to make concessions to cut its own handling fee rate.
The idea of Google executives is that 40% of EPIC’s equity is in Tencent’s hands. Then Google can directly win over Tencent to acquire all the remaining equity and fully control EPIC.
Tencent owns 40% of EPIC’s shares, while EPIC founder Tim Sweeney is the controlling shareholder, but the number of shares is no longer large.
It is also true that it is not difficult for Google, with deep pockets, to acquire EPIC, but this may require wooing Tencent to obtain support from Tencent’s board of directors.
With regard to antitrust issues, Google is neither willing to make concessions nor to cut store fees, so some Google executives said that if EPIC does not cooperate, it will completely take over EPIC.
The court documents also disclosed that Google realized that even if the company was willing to pay for EPIC, it would not sell its shares. The best way to achieve its goal was to contact Tencent.
For example, the joint Tencent acquires 100% equity of EPIC and Tencent jointly controls EPIC, or it directly buys equity from Tencent and Google controls EPIC itself.
Tim Sweeney, the founder of EPIC, shared a public document disclosed by the court on Twitter. The public document of the court hearing has not been edited and is, therefore, an internal record of Google.
At first, Google was unwilling to disclose documents and smeared Tencent-related information, but the court rejected Google’s request and Tencent-related information was finally disclosed.
Of course, this matter itself does not have much to do with Tencent. The hostile acquisition is just a proposal by Google executives that the company did not take action and did not contact Tencent.
Tim Sweeney shared this public document in order to criticize Google, a wealthy company, who wants to settle disputes through money, even if it is a hostile takeover.