• Tue. Dec 5th, 2023

Tencent is negotiating with US authorities to keep Riot and Epic stakes


May 6, 2021

A new Reuters report reveals that Tencent Holdings has been in talks with the Committee on Foreign Investment in the United States since late 2020, in order to ensure it can keep its stakes in Riot Games and Epic Games. Depending how the talks play out, the CFIUS has the power to force the China-owned corporation to divest from both companies.

The motivation for CFIUS’s interest is familiar: It needs Tencent to prove that its handling of US personal data is not a national security risk. Reuters writes that Tencent is “negotiating risk-mitigation measures,” though the details on what these measures could be aren’t known. Tencent owns Riot Games outright, while its stake in Epic Games is 40 percent, but that could change entirely if the CFIUS isn’t satisfied.

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