In a report published earlier today, it was suggested that President Donald Trump is weighing up the potential to strip Tencent’s investment stakes from United States-based gaming firms. It has been claimed that ‘top officials’ have sat down to determine if Tencent’s major stakes in primarily US (but also Finnish) gaming groups can remain moving forward.
This is all flipping back once again to the rhetoric that an inherent security risk exists while Tencent maintains investment (or outright ownership) of such powerful gaming firms. Trump is scheduled to visit China soon to meet Xi Jinping, China’s premier, and this could be a driving topic.
Billions of Dollars of Investment, Eradicated
In a report published by the Financial Times, it was said that The White House is once again lobbying for the notion of pushing Tencent out of the North American gaming market.
Tencent, one of the most recognizable Chinese gaming firms in the world, has a stake in or ownership of several studios across the United States and Canada:
- Riot Games (owned)
- Turtle Rock Studios (owned)
- Klei Entertainment (owned)
- Pocket Gems (38%)
- Epic Games (28%)
The corporation has a stake in more companies than you might realise, boasting investment in the likes of Techland, Supercell, Shift Up, Bloober Team, Ubisoft, FromSoftware, and Don’t Nod.
The Financial Times report leaned back on the topic that surfaced during Trump’s first stint in the Oval Office, which is when these security concerns appeared. They’ve followed Trump into his second term as President, and if anything, they’ve gotten more critical for the administration.
During Biden’s time in office, it was said:
Clearly the biggest national security issue in the area of gaming is data privacy and security.
If Tencent were forced to divest U.S. and European assets, it would throw the gaming world into disarray. We’re talking about a billion-dollar portfolio that supports some of the most ambitious and well-known studios in the business, almost all of which have projects in the works.
Do you think Trump’s administration will succeed in its efforts against Tencent? Let us know your thoughts on the Insider Gaming Discord server.
For more Insider Gaming coverage, check out the news that Activision is going after Call of Duty leakers
Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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