Chinese internet giant Tencent started discussions with US authorities to allay concerns its majority stakes in video game developers Riot Games and Epic Games represent a national security risk, Reuters reported.
The world’s largest gaming publisher reportedly is negotiating a deal with the Committee on Foreign Investment in the United States (CFIUS), which has the power to order Tencent to divest its holdings in the developers. The committee is reviewing how the developers handled users’ personal data.
Tencent holds a 100 per cent stake in Riot Games, the maker of massively popular League of Legends, and a 40 per cent interest in Epic Games, which developed Fortnite.
A representative for Los Angeles-based Riot Games said it operates independently from Tencent and has implemented “industry-leading practices” to protect user data, Reuters wrote. Another source said Epic Games has not been sharing user data with Tencent.
Sources told the news agency there is no certainty Tencent will reach a deal to keep the investments.
The US government has targeted a number of Chinese companies over security fears since the administration in August 2020 ordered ByteDance to divest its US operation in TikTok within 90 days.Subscribe to our daily newsletter Back