Tencent has confirmed decision to buy Sumo Group, a British video game developer, for $1.27 billion. According to Gamesindustry.biz, the Chinese software maker already owns 8.75 percent of the company, and offers a 43 percent premium over Sumo’s current worth.
“Tencent plans to use its experience and resources to help Sumo expand both in the UK and internationally, bolstering Sumo’s position in the market for top-tier creative talent and the UK’s position as a game innovation powerhouse. We think the proposed deal benefits all parties involved, provides compelling value for Sumo shareholders, and strengthens the Sumo company in the long run“, says Tencent’s chief strategy officer James Mitchell.
The acquisition will strengthen Tencent’s worldwide presence by combining Sumo’s racing and snooker games with Tencent’s more high-profile gaming portfolio, which includes the mobile version of Call of Duty. Tencent now has a mix of AAA and indie content thanks to the Sumo acquisition. Sumo was also responsible for Hitman 2 in addition to LittleBigPlanet 3 and its spin-off Sackboy, all of which were released by Sony.
This would be the second multibillion-dollar sale this year involving a British gaming maker. With Microsoft’s purchase of ZeniMax and EA’s acquisition of Codemasters, 2021 is shaping up to be a banner year for video game consolidation.