TLDR
- White House officials are considering requiring Tencent to divest its U.S. gaming properties citing national security risks.
- The Chinese company fully owns Riot Games and maintains a 28% ownership position in Epic Games, alongside other studios.
- A high-level cabinet discussion planned for Tuesday was delayed due to scheduling conflicts.
- The potential action mirrors the government’s approach to ByteDance’s TikTok ownership.
- Shares of TCEHY declined 1.72% on Wednesday, bringing year-to-date losses to 16.29%.
Shares of Tencent fell on Wednesday following a Financial Times report indicating the Trump administration is considering forcing the Chinese technology conglomerate to sell off its American video game properties.
According to sources with knowledge of the discussions cited in the report, senior administration officials have convened internal discussions to evaluate whether Tencent’s gaming assets pose national security risks.
The approach resembles the government’s strategy with ByteDance and TikTok, where officials demanded complete divestiture based on security concerns.
Tencent maintains significant presence in the American gaming industry. The Chinese firm has complete ownership of Riot Games, the Los Angeles-headquartered developer responsible for League of Legends.
Additionally, it maintains a 28% ownership position in Epic Games, the company behind Fortnite. The portfolio also includes Turtle Rock Studios, developers of Back 4 Blood and Left 4 Dead.
Internationally, Tencent acquired a controlling interest in Supercell, the Finnish mobile gaming company behind Clash of Clans, for approximately $8.6 billion in 2016.
Given the extensive nature of these investments, any mandated sale would constitute a significant corporate restructuring rather than a simple adjustment.
Senior cabinet officials had planned to convene Tuesday for additional review of the matter. The FT reported that gathering was rescheduled due to calendar conflicts.
The White House has not yet provided comment on the matter. Tencent similarly declined to issue a statement.
Reuters indicated it was unable to independently confirm all details from the Financial Times reporting.
Trump-Xi Meeting Adds Complexity
The timing of these internal discussions carries significance: President Trump is reportedly planning to meet with Chinese President Xi Jinping in China during April.
Some analysts suggest this diplomatic context may influence the administration’s approach to Tencent’s American holdings ahead of that scheduled meeting.
How this diplomatic consideration might affect any final decision remains uncertain.
Wall Street Reaction
Analyst coverage of TCEHY remains limited. Hans Engel from Erste Group stands as the sole analyst providing recent commentary, issuing a Hold rating on Feb. 18, 2026, representing a downgrade.
The rating did not include a specific price target.
TCEHY shares dropped 1.72% during Wednesday’s trading session. The stock has declined 16.29% since the beginning of the year, with a 0.96% loss over the trailing twelve months.
Officials have not announced a new date for the postponed cabinet meeting, leaving the review’s conclusion uncertain.
