The Trump administration is evaluating whether Tencent can retain its stakes in several U.S. game developers due to national security concerns. This review could lead to forced divestments affecting companies like Epic Games and Riot Games.
Tencent's Investments in Focus
Tencent, based in Shenzhen and listed in Hong Kong, owns Riot Games entirely and holds a 28% stake in Epic Games. The company also has investments in Funcom, Grinding Gear Games, Ubisoft, Techland, Remedy, Paradox, FromSoftware, Discord, and Roblox. The Financial Times initially reported these deliberations, which were later confirmed by Reuters.
National Security Concerns
The review of Tencent's American investments is part of broader U.S.-China tensions, similar to previous actions taken against TikTok. The potential national security risk is being assessed ahead of a meeting between President Trump and China's President Xi Jinping. A planned discussion on this matter, initially set for 2023-03-03, was reportedly postponed.
PCGamesN reached out to Tencent, Epic Games, and the White House for comments on the situation.
