Chinese tech company Tencent has announced its plans to buy UK-based gaming company Sumo Group for $1.27 billion, as per reports by Gamesindustry.biz. Tencent already owns an 8.75% stake in Sumo Group and this offer will see a 43% increase on Sumo Group’s last closing price.
“The three founders of Sumo, who work in the business, Paul Porter, Darren Mills, and I are passionate about what we do and are fully committed to continuing in our roles,” says Sumo CEO Carl Cavers in a statement. “The opportunity to work with Tencent is one we just couldn’t miss. It would bring another dimension to Sumo, presenting opportunities for us to truly stamp our mark on this amazing industry, in ways which have previously been out-of-reach.”
Sumo Group is the developer behind PlayStation exclusive platformer Sackboy: A Big Adventure and Crackdown action-adventure games that are available on old-generation Xbox consoles and PC.
Sackboy: A Big Adventure won the Family Game Award at the 2021 BAFTA Game Awards.
Tencent increasing presence in the gaming industry
With this buyout, Tencent is increasing its influence even further in the gaming industry outside Asia. “Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the UK and abroad, supporting Sumo in the market for top-notch creative talent, and the UK as a hub for game innovation,” says Tencent’s chief strategy officer James Mitchell. “We believe the proposed transaction benefits all stakeholders, delivers compelling value for Sumo shareholders while enhancing the Sumo business for the future.”
The company is primarily known for distributing the popular battle royale title PUBG, PUBG Mobile, and Call of Duty: Mobile. They have previously invested in companies like Krafton (makers of Battlegrounds Mobile India), Riot Games, Epic Games, and more. Earlier this month, they bought a stake in Dontnod Entertainment, developers behind Life Is Strange and Vampyr.