It's official: RuneScape developer Jagex has been sold to a Chinese-owned shell corporation registered in Delaware.
To be fair to Jagex, the developer that makes RuneScape, it was already owned by a Chinese company called Fukong after being purchased by Hongtou Holdings in 2016. Then it went to another Chinese holding company that eventually came to be known as Fukong Interactive Entertainment.
Last summer, rumors surfaced that Fukong was trying to sell Jagex in order to repay its debts. A report surfaced that the company had been sold to an American company called US Platinum Fortune, which was a completely unknown entity at the time.
Though Jagex was initially being cagey about its financial future, we now have official confirmation that Fukong has indeed sold Jagex to US Platinum Fortune for the price of $530 million USD.
The news comes via Reddit user Jin001, who was kind enough to translate the various Chinese financial statements. They confirm the sale but also state that US Platinum isn't what it appears. It is, in fact, a shell corporation registered in Delaware - a state known as a tax haven thanks to its lax tax laws and unenforced corporate laws. It's also owned by a Chinese lawyer living in the US.
Top comments on Reddit all say that this is a clear move to avoid paying UK taxes and save some cash. Even so, shares with Fukong reportedly fell 15% after news broke of the transparent push to avoid paying taxes.
Taxes have been a big thing in the British games industry lately. National headlines were made after it was revealed that some of the biggest names in gaming were dodging taxes by opening shell corporations in the Carribean. Rockstar Games and Activision Blizzard are just two of the biggest names that use this tactic to avoid paying millions in taxes.
Fukong doing the same thing is hardly unexpected, but it is notable for a company that appears to be in some financial trouble. One wonders if RuneScape will still be around for much longer.
Source: Reddit