How much is Riot Games worth in 2023?
As of March 2023, Riot Games has an estimated valuation of $75 billion. This meteoric rise has cemented their status as one of the most valuable video game companies globally.
Riot‘s valuation has skyrocketed in the last decade (Source: CNBC)
But Riot came from humble beginnings. Their breakout hit League of Legends was once a fledgling upstart in the gaming industry.
From dorm room project to gaming empire
Riot was founded in 2006 by University of Southern California roommates Brandon Beck and Marc Merrill. They set out to develop a new kind of competitive online game centered around teamplay.
After 3 years of development, Riot released League of Legends in October 2009. The free-to-play PC game popularized the multiplayer online battle arena (MOBA) genre with a twist – no individual heroes, only teamwork.
While the game saw modest initial success, the arrival of live streaming catapulted League into historic popularity from 2010-2019. Its vibrant esports scene turned young gamers into household names with million dollar tournament prizes.
"League hit this perfect storm of free accessibility, competitive gameplay and spectator excitement that made it fundamentally native to streaming platforms"
– Greg Kim, Riot Producer
At its peak in 2016, over 100 million players logged into League every month. To this day, it remains one of the most played core PC games globally.
With countless players investing money into new characters, skins and other virtual goods, League of Legends revenue exceeded $1.5 billion annually by 2021.
Flush with cash, Riot Games has steadily expanded beyond League of Legends into a multifaceted entertainment empire.
Riot‘s expanding empire
Riot‘s annual revenue has skyrocketed since 2016 (Source: GamingScan)
Riot has since released several new titles in various genres:
- Legends of Runeterra (CCG, 2020)
- VALORANT (FPS, 2020)
- Teamfight Tactics (Auto Battler, 2019)
- League of Legends: Wild Rift (MOBA, 2020)
- *CONVI/R** (Fighting game, TBA)
- *Song of Nunu** (Adventure game, TBA)
These games have racked up their own piles of players and revenue, but Riot has even bigger ambitions.
Doubling down on esports
Riot committed early to building professional League of Legends leagues modeled after traditional sports. The League Championship Series (LCS) and its regional counterparts laid the groundwork for today‘s massive viewership.
In 2021, the League of Legends World Championship saw nearly 74 million peak concurrent viewers, breaking esports viewership records once again.
Fans can also watch professionals battle in VALORANT and Wild Rift competitions like VALORANT Champions through Riot‘s partnerships league.
Investing heavily in these leagues is a priority, even if profitability suffers short term. Riot earned $147.6 million in sponsorship revenue from esports alone in 2021. With competitive gaming popularity booming, those sponsorship deals will only continue growing.
Branching into entertainment
Beyond gaming, Riot is expanding League of Legends into multimedia entertainment through books, music, and film.
Their first foray arrived in 2021 with Arcane, a visually stunning Netflix animated series chronicling League champions‘ origins. Arcane drew over 127 million views in its debut month and won critical acclaim.
Riot plans to develop more shows, indie games, and who knows what else to flesh out League‘s universe into a cross-media juggernaut on par with Marvel or Star Wars.
"We aspire to be an entertainment giant on the level of Disney one day"
– Nicolo Laurent, Riot Games CEO
If Riot continues executing on gaming, esports, and entertainment, that goal may not be too farfetched.
How Riot compares to gaming titans
Riot‘s estimated $75 billion valuation seems enormous, but how does it stack up against gaming‘s biggest behemoths?
| Company | Market Cap | Key Franchises |
|---|---|---|
| Tencent | $560B | League of Legends, Clash of Clans, Fortnite |
| Sony | $100B | PlayStation, God of War, Spiderman |
| Nintendo | $60B | Mario, Zelda, Pokémon |
| Activision Blizzard | $58B | Call of Duty, Overwatch, WoW |
| Riot Games | $75B | League of Legends, VALORANT, Wild Rift |
| Electronic Arts (EA) | $35B | FIFA, Madden, Apex Legends |
Chinese conglomerate Tencent dwarfs all competition after acquiring Riot Games in 2015. However, Riot still operates independently under its own leadership.
Among traditional western game publishers, Riot has now surpassed Activision Blizzard and EA in estimated value. The gap only looks set to widen.
What lies ahead for Riot?
I‘ve been playing League of Legends for over 10 years now. From my perspective as a longtime fan, Riot‘s future shines bright across games, esports, and entertainment.
However, much comes down to these upcoming priorities:
- Sustaining League‘s playerbase over the next decade
- Growing emerging markets like India, Brazil, Middle East
- Continued expansion into smartphone & console games
- Investing deeper in esports & entertainment
If Riot can maintain League‘s ubiquity while broadening its footprint, reaching a Disney-esque entertainment value looks achievable.
Of course, the video game industry moves at breakneck speed. But given their proven adaptability thus far, I‘d never bet against Riot.
How much is Riot worth? For now, $75 billion and counting.
