Tencent has invested in a lot of US-based game studios over the years, the biggest of which is ownership over Riot Games and a 40 percent stake in Epic Games. However, depending on negotiations with US authorities, Tencent could be forced to sell its investments. 

As reported by Reuters, Tencent has been in negotiations with a US national security panel since late 2020. The Committee on Foreign Investment in the United States (CFIUS), is investigating whether Tencent’s hold over US companies poses a risk to national security.

Currently, the discussions revolve around risk-mitigation measures, ensuring data on US citizens and businesses isn’t going to the Chinese government.

If CFIUS is not satisfied with the measures in place, it has the authority to force Tencent to sell its shares in US companies like Epic Games and Riot. Whether talks escalate to that point still remains to be seen.

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KitGuru Says: For what its worth, Epic Games says it does not share data with Tencent and Riot is currently not commenting on the matter.

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