Tencent (HKG:0700) is considering investing several hundred million dollars in Paramount Skydance's planned acquisition of Warner Bros. Discovery, Bloomberg News reported Monday, citing people familiar with the matter.

The Chinese technology company is expected to participate as a passive financial investor, the report said.

Paramount's December offer for Warner Bros. Discovery included a $1 billion equity commitment from Tencent, according to a U.S. Securities and Exchange Commission filing at the time.

The pledge was later withdrawn after Warner Bros. Discovery raised concerns that Tencent's participation could prompt national security scrutiny from U.S. regulators.

Warner Bros. Discovery subsequently agreed to be acquired by the David Ellison-led company after Paramount increased and revised its bid in a transaction valued at about $110 billion.

Tencent has not made a final decision on the investment and could still opt out, Bloomberg said, adding that the transaction may take time to complete.

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