Tencent in negotiations with CFIUS to keep Riot and Epic games stakes

According to some sources from Reuters, Tencent Holdings are in negotiations with the US national security panel to keep its ownership stakes in US video game developers Riot Games and Epic Games. They have been in talks with the Committee on Foreign Investment in the United State (CFIUS), which has the authority to order Tencent to divest US holdings, since late 2020. CFIUS has the power to force the cooperation to divest from both companies, Riot Games and Epic Games. 

Because Tencent needs to prove that it's handling the personal data of the users of Riot and Epic games, it's a matter of national security risk because of Chinese ownership. 

Tencent owns a 40 % stake in Epic, and also acquire Riot Games, and that could change if CFIUS wants. Both Epic and Riot games are the owner of big titles, Fortnite and League of Legends, both are very popular and big titles. 

Tencent is negotiating risk mitigation measures with CFIUS so it can keep its investments, and also according to Reuters sources Epic Games have not been sharing any user data with Tencent, and Riot Games spokesman also said that Riot operates independently of Tencent and that it has implemented "industry-level practices" to protect player data

CFIUS has been targeting Chinese ownership of US technology assets in the last few years because of risks like human rights and the protection of intellectual data, as they are concerned that the personal data of US citizens can end up in hands of China's Communist Party government. 

Last year Former President, Donald Trump issued an executive order banning any transactions related to China-owned Tik-Tok and Tencent-owned WeChat. And the Biden administration maintained an aggressive position against China and putting more emphasis on geopolitical issues such as the future of Taiwan and Hong Kong. 

Time will run its course and we will see what happens afterward, and also what will happen in the case of EpicvApple case.