White House officials are deliberating whether Tencent (HKG:0700) could maintain its ownership in popular video game companies, the Financial Times reported Tuesday, citing people familiar with the matter.
The Chinese tech and gaming company owns Riot Games, the Los Angeles-based creator of League of Legends, and holds a 28% stake in U.S.-based Epic Games, maker of Fortnite. It also owns Supercell, the Finnish mobile game developer of Clash of Clans, which primarily caters to American audiences, according to the report.
The company's gaming investments have been under review by the U.S. Committee on Foreign Investment, which previously questioned whether Tencent could gain access to data of millions of Americans via its investments, the report said.
The focus on Tencent comes ahead of U.S. President Donald Trump's meeting with his Chinese counterpart Xi Jinping in China in April over concerns that they could pose a security risk to the U.S.
Tencent previously negotiated measures with the Committee on Foreign Investment in the US to mitigate Washington's security concerns, according to the FT.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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