Epic Games and Riot Worried Due to Tencent Investment
Follow Us
Chinese companies have drawn heavy criticism in recent weeks due to the current geopolitical scenario. This has eventually affected a lot of gaming companies, especially in the US. Big names like Riot Games and Epic Games are among those affected by it since Chinese giant Tencent solely own Riot Games and also have a 40% stake in Fortnite’s studio, Epic Games.
Epic Games and Riot Receive Letters From White House
ADVERTISEMENT
Article continues below this ad
The White House recently proposed an executive order that would prohibit transactions between Tencent and US companies. The order will come into effect next week. While it was primarily aimed at the Chinese texting app WeChat, it triggered investigations in other companies as well.
ADVERTISEMENT
Article continues below this ad
Chaired by the Treasury Department, the Committee on Foreign Investment in the US (CFIUS) looks into risks from foreign investments in US companies. The committee had sent letters to Epic Games and Riot Games asking them to share more information on their data security protocols.
Trending
“Really Struggling”: Patrick Mahomes’ Wife Brittany Provides Worrying Health Update
March 27, 2024 05:35 PM EDT
‘Fu*in Clowns’: Martin Truex Jr Urges Joe Gibbs to ‘Find a New Fu*in Driver’ in Fiery COTA Rant
March 27, 2024 06:09 PM EDT
“Beast Is Coming”: Brock Lesnar WrestleMania XL Return Expected Online After Rumored Reference During Dwayne ‘The Rock’ Johnson & Cody Rhodes Fight
March 28, 2024 07:30 AM EDT
After Deion Sanders Jr.’s Shiny $79K Purchase, Shedeur & Shilo Follow Their Brother’s Footsteps to Flaunt New Beast
March 26, 2024 01:13 PM EDT
Brock Lesnar Seemingly Teased in Dwayne ‘The Rock’ Johnson & Cody Rhodes RAW Segment Amid WrestleMania XL Return Rumors
March 28, 2024 06:51 AM EDT
Get instantly notified of the hottest stories via Google! Click on Follow Us and Tap the Blue Star.
Follow Us
GamesIndustry.biz reported that the letter sent to both the companies have enquired about their security procedure in handling customers’ private information. The website reached out to both the companies. While Epic refused to comment, they are still awaiting a response from Riot.
However, gaming companies can take a breather for a while. LA Times reporter Sam Dean has affirmed from the White House that gaming companies are not in the crosshairs. He tweeted his explanation for the same.
ADVERTISEMENT
Article continues below this ad
Other companies that Tencent has invested in include US-based mobile developer Glu Mobile and Activision Blizzard. Tencent owns 15% and 5% stakes in these companies, respectively. The CFIUS may investigate these two companies too in the coming weeks.
While the White House has confirmed that it wouldn’t target gaming companies, this statement came out more than a month ago. Hence, the committee’s recent actions might worry the aforementioned companies. Further details will be out as soon as the investigation develops and either of the companies releases a statement.