Chinese gaming giant Tencent has announced its intention to fully acquire British studio Sumo in a $ 1.27 billion deal.
Tencent already owns 8.75% and is the second largest shareholder in Sumo, which has 14 studios spread across five countries and is known for games like Sackboy: A Big Adventure, Crackdown 3 and Sonic & All-Stars Racing Transformed.
If the agreement is fulfilled, Sumo will continue to work on its existing projects, including work on hiring titles for various clients.
“The Sumo Council strongly believes that the business will benefit from Tencent’s broad videogaming ecosystem, experienced experience in the industry and its strategic resources,” said Ian Livingstone, non-executive chairman. prepared statement.
Tencent, which has already invested in more than 800 companies, is one of the largest companies in the world by market value ($ 680 billion).
In addition to owning Riot Games, creator of League of Legends, it has a 40% stake in Epic Games and owns shares in Activision Blizzard, Ubisoft, parent company PUBG Corporation Bluehole, PlatinumGames and Marvelous Inc.
Daniel Ahmad, senior analyst at Niko Partners, said Tencent could continue its “hands off” approach when it comes to managing Sumo, if the deal happens.
“Tencent acquires Sumo Digital for its wide range of experience developing and operating AAA games and live service games, most of which are developed for customers such as Sony, Microsoft, Sega and others,” he said.
“Tencent will continue to support Sumo on these jobs for leasing projects, but the company could also be an invaluable partner for Tencent because it seems to be pushing into the AAA gaming space itself with its own projects.
“The agreement would also help Sumo build on Tencent’s experience in gaming development and publishing in China.”