Tencent buys UK games studio Sumo for $ 1.27 billion – .

Tencent buys UK games studio Sumo for $ 1.27 billion – .

Tencent has announced plans to buy British video game company Sumo Group for $ 1.27 billion. The Chinese tech giant already has an 8.75% stake in the developer, as Gamesindustry.biz reports, and the offer represents a 43% premium over Sumo’s current valuation.

Based in Sheffield, England, Sumo Digital, Sumo’s reputable core studio, has done contract work for many of the biggest names in video games. He developed the Sony PlayStation 5 launch title Sackboy: a great adventure and was the main studio behind Microsoft Repression 3 for Xbox and PC consoles. In 2017, Sumo released Serpent Pass for multiple platforms, its first foray into the original IP.

“The three founders of Sumo, who work at the company, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles,” Sumo CEO Carl Cavers said in a statement. “The opportunity to work with Tencent is one we just couldn’t miss. It would bring another dimension to sumo, providing opportunities for us to really make our mark on this incredible industry in a way that was previously beyond our reach. “

Cavers says Tencent has “demonstrated a commitment to supporting” the work of Sumo customers, as well as its own original IP, so things are unlikely to change too quickly. The buyout, however, gives Tencent another foothold in the international gaming industry, following significant investments in companies like Epic, Riot, Activision and Ubisoft.

“Tencent intends to bring its expertise and resources to accelerate Sumo’s growth in the UK and overseas, supporting Sumo in the market for top-notch creative talent and in the UK as a innovation hub in games, ”said Tencent’s chief strategy officer. James Mitchell. “We believe that the proposed transaction benefits all stakeholders, provides compelling value to Sumo shareholders, while improving the Sumo business for the future. “

This would be the second billion dollar deal involving a UK game developer this year – EA finalized its acquisition of racing game specialist Codemasters for a similar price in February.


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