Riot Games is one of the world’s most successful video game developers, best known for creating the hugely popular League of Legends franchise. As a private company, Riot Games stock is not available for direct investment. However, there are still several ways for investors to gain exposure or benefit from Riot Games’ success. This article will explore 3 main options: investing in parent company Tencent, investing in an esports ETF that holds Tencent, and investing in other game developers working with Riot Games.
Invest in Tencent Holdings, Riot Games’ parent company
The most direct way to invest in Riot Games is to buy shares of its parent company Tencent Holdings. The Chinese tech giant acquired Riot Games in 2011 and owns 100% of the company. As one of Tencent’s most valuable assets, Riot Games contributes significantly to Tencent’s gaming revenues and profits. Investors can buy Tencent stock on the Hong Kong Stock Exchange, giving them exposure to Riot Games’ financial performance and future growth potential.
Invest in esports and gaming ETFs with Tencent exposure
For investors who want exposure to Riot Games but don’t want to directly invest in Tencent, an alternative is investing in ETFs that hold Tencent stock. Many esports and video gaming ETFs have Tencent as a top holding, as it’s one of the biggest gaming companies in the world. For example, the Global X Video Games & Esports ETF (HERO) has a 9.5% weighting in Tencent. Investing in these ETFs provides indirect exposure to Riot Games’ success.
Invest in other game developers working with Riot Games
Riot Games collaborates frequently with other game developers on new titles. Investing in some of these studios provides an opportunity to benefit from Riot Games’ growth. For example, Riot Forge works with third-party developers to create new League of Legends games. Currently, games are in development from studios like Airship Syndicate, Double Stallion, and Digixart. Though risky, investing in these small developers could pay off handsomely if their Riot Games projects succeed.
In summary, investors looking to gain exposure to Riot Games have a few options, including buying Tencent stock directly, investing in esports and gaming ETFs that hold Tencent, and investing in other game developers working with Riot. While not without risks, these alternatives give both institutional and retail investors ways to benefit from Riot Games’ soaring popularity and success in the video game market.