White House Weighs Forcing Tencent Out of Epic Games
The US government is debating whether Chinese giant Tencent can keep its stakes in American and Finnish game studios.
The White House is actively deliberating whether to let Tencent hold onto its investments in US and Finnish video game companies. The Chinese tech giant owns a 28% stake in Epic Games, the studio behind Fortnite.
Tencent's gaming investments have been under a prolonged US national security review. The question now is whether those stakes represent an acceptable risk or a line that needs to be drawn.
Epic Games isn't some small indie shop. It's one of the most influential game companies on the planet, powering Unreal Engine and operating a major PC game storefront. A forced divestiture would send shockwaves through the global gaming industry.
The Finnish companies in question weren't named, but Tencent holds significant positions across multiple European studios. The outcome here could set a major precedent for foreign investment in the gaming sector.