Chinese tech giant Tencent Holdings has pulled out of Paramount Skydance Corp’s $108 billion takeover bid for Warner Bros Discovery. The move comes amid heightened scrutiny of foreign investment in the United States.
Tencent had pledged $1 billion as part of Paramount’s December 1 proposal. However, it was removed as a financing partner in Paramount’s revised all-cash offer of $30 per share, announced Monday.
Warner Bros expressed concern that Tencent’s involvement as a non-US financier could trigger a review by the Committee on Foreign Investment in the United States (CFIUS). Paramount confirmed Tencent would no longer participate in the deal.
Tencent, China’s most valuable technology firm, operates WeChat and owns major gaming titles including Honor of Kings, PUBG Mobile, and League of Legends. It also holds stakes in US firms like Epic Games and Snap Inc.
Despite its $700 billion market capitalization and $20 billion in cash, Tencent has faced greater US scrutiny since January 2025, when the Department of Defense designated it a “Chinese military company,” a label the firm denies.
Paramount’s latest bid now relies on three Middle Eastern sovereign wealth funds and Jared Kushner’s Affinity Partners, which agreed to forgo governance rights to avoid CFIUS jurisdiction. Tencent’s $1 billion commitment was not central to the hostile bid.
The $108 billion Paramount offer competes with Netflix’s $72 billion acquisition plan, marking a high-stakes battle for control of a major Hollywood studio.
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