Tencent buys UK video game developer Sumo Group
Tencent logo displayed on a smartphone.
Omar MarquÃ©s | SOPA Images. LightRocket | Getty Images
LONDON – Tencent announced Monday that it has agreed to acquire British video game developer Sumo Group for Â£ 919 million ($ 1.26 billion).
The Chinese gaming giant is offering Sumo 513 pence a share, a 44% premium over the company’s closing price on Friday. London-listed shares of Sumo climbed more than 40% on news of the deal on Monday.
Tencent already owns an 8.75% stake in Sumo, which mainly develops games for other publishers. Sumo’s portfolio includes Sackboy: A Big Adventure, a title released by Sony, and several racing games based on Sega’s Sonic the Hedgehog franchise.
The acquisition of Sumo marks the latest takeover of a British video game company by a foreign company. EA recently bought UK racing game maker Codemasters for $ 1.2 billion, while Epic Games acquired Tonic Games Group, the studio behind Fall Guys, which became a mega-hit at the start of the Covid pandemic. -19.
Tencent, the world’s largest video game publisher, has acquired stakes in several game companies. The company owns League of Legends developer Riot Games and Finnish mobile game maker Supercell. He also owns a 40% stake in Epic Games, the company behind Fortnite.
Tencent has also bought smaller stakes in a number of game companies, including French independent game developer Dontnod Entertainment, Swedish strategy game publisher Paradox Interactive and Czech company Bohemia Interactive.
âTencent has stepped up the pace of its investments and acquisitions over the past year as it seeks to strengthen its position and embark on new areas of growth for the company,â said Daniel Ahmad, analyst at Niko Partners.
“” Tencent acquires Sumo Digital for breadth of its experience in developing and operating AAA games and live service games, the majority of which are developed for customers such as Sony, Microsoft, Sega and others . “