Tencent in talks with the U.S. to keep Epic and Riot stakes

Chinese tech company Tencent Holdings Ltd. is reportedly in negotiations with the United States in order to keep its stakes in Riot Games and Epic Games, sources close to the company said. 

As reported by Reuters, the sources said that Tencent has been holding negotiations with the Committee on Foreign Investment in the United States (CFIUS) since the second half of 2020. 

They said that CFIUS focuses on the question whether the personal information held by Epic Games and Riot Games, of which Tencent is a stakeholder, could pose a threat to national security.

Also Read: U.S. Considers Adding Alibaba and Tencent To China Stock Ban

The Chinese tech giant has a 40% stake in Epic Games, the developer behind the hit battle-royale title Fortnite. Meanwhile, one of the sources said Epic doesn’t share personal data with the Chinese company.  

In February 2011, Tencent bought 93% of Riot Games, which is very famous for its hit video game League of Legends, for reportedly over $350 million. In 2015, the company acquired the rest of Riot. 

In addition, sources who wanted to remain anonymous added that it’s not certain yet if the company will make a deal to hold its stakes.