A US senator sought a review of Tencent's (HKG:0700) participation in the merger of Paramount Global and Skydance Media, noting security risks, Bloomberg News reported Friday, citing a letter to the Treasury Department.
Arkansas Republican Senator Tom Cotton said the transaction is "troubling," noting Tencent's ownership of up to 10% of Skydance, the report said.
Cotton called the national security risk "unacceptable," according to the report.
Tencent "likely will hold some ownership of the new company post-merger," the report said, citing Cotton's letter.
The Chinese internet giant will hold nonvoting, publicly-traded shares in the new company post-merger, and will not be able to influence management, the report said.
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