China’s Tencent quits Paramount’s bid for Warner Bros to avert national security questions
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Article contentBANGKOK (AP) — Chinese gaming and social media giant Tencent Holdings has withdrawn from Paramount Skydance Corp.’s bid to buy Warner Bros Discovery, according to a revised filing of its takeover bid by Paramount with the U.S. Securities and Exchange Commission.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe filing seen Wednesday shows the Chinese company dropped its $1 billion financing commitment for the takeover bid.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentParamount said the Chinese company’s participation in the bid had raised concern, since it would be a “non-U.S. equity financing source,” that its bid might be subject to a review by the Committee on Foreign Investment in the United States, known as CFIUS. That was even though approval by CFIUS or by the Federal Communications Commission was not a condition of the bid.Article contentArticle contentThe SEC filing, dated Monday, said that foreign sovereign wealth funds of Saudi Arabia, Abu Dhabi and Qatar, which are providing $24 billion for Paramount’s bid, had agreed to give up a right to participate in Warner Bros’ management to avoid the additional scrutiny.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentOn Monday, Paramount launched a hostile $77.9 billion takeover offer for Warner Bros. Discovery, competing with rival bidder Netflix to buy the company behind HBO, CNN and a famed movie studio.Article contentBig deals that involve foreign companies are sometimes subject to national security reviews by CFIUS, a U.S. government group chaired by the Treasury Secretary that studies mergers for national-security reasons. It has the power to force companies to change ownership structures or divest completely from the U.S.Article contentUnder former President Joe Biden as well as President Donald Trump, the Treasury Department has sought to strengthen its powers as national security concerns related to foreign investment have increased.Article contentTencent is among dozens of Chinese companies that the U.S. Defense Department has included in a list of companies it said have ties to China’s military. Tencent, whose shares are listed in Hong Kong, denies that.Article contentArticle contentBased in the southern technology and financial hub of Shenzhen, Tencent owns the League of Legends developer Riot Games and has ties with other big U.S. entertainment brands. It also has a streaming deal with the National Basketball Association.Article contentIt is the world’s largest equity investor in online games and a major entertainment and social media company, operating the WeChat messaging and payments service in popular China and with Chinese emigrants abroad. Tencent has a market capitalization of over $700 billion, according to Hong Kong’s stock exchange.Article contentThere was no immediate comment from Tencent.Article contentTrending Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Toronto, Vancouver home prices to fall in 2026 as rest of Canada ploughs ahead, Royal LePage says News Budget watchdog regrets calling Canada's fiscal position 'stupefying' Economy Posthaste: China is gaining ground in a crucial power struggle most people don't know exists News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: A market phenomenon not seen in 50 years is raising red flags at the world's central bank News David Rosenberg: 10 reasons why we're now bullish on the Canadian dollar for the first time in many years News Toronto, Vancouver home prices to fall in 2026 as rest of Canada ploughs ahead, Royal LePage says News Budget watchdog regrets calling Canada's fiscal position 'stupefying' Economy Posthaste: China is gaining ground in a crucial power struggle most people don't know exists News