Chinese technology conglomerate Tencent is set to buy UK-based game studio Sumo Group for $1.3bn. Sumo – which has offices in Sheffield, Leamington Spa, Nottingham and Newcastle and is one of the UK’s biggest game developers – is behind hits such as Sackboy: A Big Adventure and Crackdown 3. The company will add to Tencent’s portfolio, which includes bestsellers such as League of Legends, Honor of Kings and PUBG Mobile – a platform Tencent hopes to bring to Western audiences. The deal is set to close at the end of 2021 after being approved unanimously by Sumo’s board.
Tencent to acquire British game studio Sumo Group for $1.3 billion
Introduction
Chinese multinational technology conglomerate, Tencent, has announced its plans to acquire British game developer, Sumo Group, for a whopping $1.3 billion. The deal will bring Tencent even closer to becoming the world’s largest gaming company and strengthen its foothold in the western gaming scene.
Details of the deal
The $1.3 billion deal will see Tencent pay £4.85 ($6.52) per share for Sumo Group, which is a 43% premium on its closing price on Friday. The acquisition has already been unanimously approved by the board of directors at Sumo Group, and is expected to be completed by the end of the year.
About Sumo Group
Sumo Group was founded in 2003 and has since grown into one of the largest independent game developers in the UK, with over 1,200 employees across studios in Sheffield, Nottingham, Newcastle, and Leamington Spa. The company has worked on popular games such as Sackboy: A Big Adventure, Crackdown 3, and the upcoming Hood: Outlaws and Legends.
Tencent’s gaming empire
Tencent is no stranger to the gaming industry, having established itself as one of the largest gaming companies in the world. The company’s gaming portfolio includes popular titles such as League of Legends, Honor of Kings, and PUBG Mobile. Tencent also owns stakes in various other gaming companies, including Activision Blizzard, Epic Games, and Riot Games.
Tencent’s expansion into the western gaming scene
The acquisition of Sumo Group is another step in Tencent’s expansion into the western gaming scene. In recent years, the company has been acquiring stakes in various European and North American game developers, including Klei Entertainment, Don’t Starve, and Supercell, the maker of Clash of Clans. Tencent has also been working on bringing Honor of Kings and PUBG Mobile to western audiences.
Conclusion
The acquisition of Sumo Group is a significant move for Tencent as it expands its gaming empire and strengthens its foothold in the western gaming scene. Sumo Group’s expertise in game development and strong track record of producing quality games will undoubtedly be a valuable addition to Tencent’s portfolio. The deal is yet another example of Tencent’s determination to be the dominant player in the global gaming industry, a goal that it is well on its way to achieving.