Tencent (TCEHY) Stock Falls as White House Reviews National Security Concerns

TLDR

• The Trump administration is debating whether to force Tencent to sell its U.S. video game investments on national security grounds.
• Tencent owns Riot Games outright and holds a 28% stake in Epic Games, plus owns Supercell and Turtle Rock Studios.
• A cabinet-level meeting scheduled for Tuesday was postponed due to scheduling issues.
• The review follows the same playbook used against ByteDance, which was forced to divest TikTok.
• TCEHY stock dropped 1.72% on Wednesday and is down 16.29% year-to-date.

Tencent stock dropped Wednesday after the Financial Times reported the Trump administration is weighing whether to force the Chinese tech giant to offload its U.S. video game investments.

The report, citing people familiar with the deliberations, said top White House officials have held internal meetings to assess whether Tencent’s gaming holdings represent a national security threat.

The situation mirrors what happened with ByteDance and TikTok, where the U.S. government pushed for a full divestment on security grounds.

Tencent’s exposure to the U.S. gaming market is substantial. The company outright owns Riot Games, the Los Angeles-based studio behind League of Legends.

It also holds a 28% stake in Epic Games, the creator of Fortnite. Turtle Rock Studios, known for Back 4 Blood and Left 4 Dead, is also in Tencent’s portfolio.

Beyond the U.S., Tencent paid around $8.6 billion in 2016 for a majority stake in Supercell, the Finnish mobile game studio behind Clash of Clans.

The breadth of these holdings means any forced divestment would be a major restructuring, not a minor trim.

A cabinet meeting was scheduled for Tuesday to review the issue further. That meeting was postponed due to scheduling conflicts, according to the FT.

The White House did not immediately respond to requests for comment. Tencent also declined to respond.

Reuters confirmed it could not independently verify the full scope of the FT’s reporting.

Trump-Xi Meeting Adds Complexity

The timing of these deliberations is notable in one respect: President Trump is reportedly preparing to meet Chinese President Xi Jinping in China in April.

Some observers believe that context could influence how aggressively the administration moves on Tencent’s investments before that meeting takes place.

Whether that diplomatic backdrop slows or shapes any decision remains to be seen.

Wall Street Reaction

On the analyst side, coverage of TCEHY is thin. Erste Group’s Hans Engel is the only analyst to have weighed in recently, issuing a Hold rating on Feb. 18, 2026, when he downgraded the stock.

No price target was attached to that rating.

TCEHY fell 1.72% on Wednesday. The stock is now down 16.29% year-to-date, and has lost 0.96% over the past 12 months.

The postponed cabinet meeting has yet to be rescheduled, leaving the outcome of the review unresolved.

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