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Tencent, the biggest Internet company in China, announced recently that it was planning to take the majority stake of Riot Games, an American online games developer. From my perspective, the event is a symbol that SNS and online games are still promising markets; besides, it is also a sign that Tencent wants to develop its overseas market.

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Tencent is the agent of Riot Games’ product, League of Legends, in China. According to Bloomberg, this purchase values more than 350 million dollars. After the purchase, Riot will remain independent operation, while receiving financial aid and sharing Chinese market resource with Tencent. Goldman Sachs raises Tencent’s target To HK$185 in its investment report on Feb. 7.

In recent years, Tencent kept on exploiting the overseas market. Last year, Tencent purchased 10% of DST, a Russian investment company, indirectly holding Facebook and Zynga. Tencent has more than 300 million customers in China. It is now seeking higher position in global Internet market. According to Bloomberg’s report, the market for social and mobile games has attracted more suitors since late 2009, when Electronic Arts Inc. purchased Playfish Inc. for about $400 million. Playdom Inc. was acquired last year by Walt Disney Co. for $563.2 million, and Japan’s DeNA Co. purchased Ngmoco for $400 million. Zynga, the biggest maker of games on Facebook, is valued at $6 billion on secondary exchange SharesPost Inc.

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A hidden meaning of this purchase would be that Tencent wants to get rid of the image of a plagiarist. In China, Tencent is criticized by the public of plagiarizing the others’ ideas thus killing the small companies. So far, Tecent has introduced similar products as Groupon, Twitter, MySpace, etc. Thanks to its large customers amount, the similar products are widely accepted, while the original ones found it impossible to obtain a large scale of customers. League of Legends is anticipated by Tencent to share the market of DotA, a similar game based on Blizzard’s Warcraft III which has millions of players in China.