Tencent to shop for British online game studio Sumo for $1.27 billion | Engadget
In a hectic yr for gaming mergers, any other deal has simply been introduced. Tencent is to completely gain Sumo Group, the United Kingdom developer in the back of LittleBigPlanet 3 and Crackdown 3. The Chinese internet massive is providing 513 pence in keeping with percentage for the studio, during which it already owns an 8.75 % stake, valuing it at $1.26 billion (990 million).
The acquisition brings any other primary developer into the Tencent fold. Already the arena’s greatest gaming corporate, Tencent owns League of Legends studio Riot Games, and has a monetary stake in different publishers together with Epic Games, Activision Blizzard, Ubisoft, Bluehole, Paradox Interactive, Supercell, Grinding Gear Games and Yager, at the side of chat platform Discord. In February, the corporate obtained a minority place in DayZ developer Bohemia Interactive.
But, Tencent’s dominance has caused regulatory pushback at house and out of the country. Earlier this month, Chinese government blocked its plan to merge its two sport livestreaming websites, Douyu and Huya. Tencent could also be negiotiating an settlement with a US nationwide safety panel that may permit it to retain its stakes in US firms Riot Games and Epic Games, in step with more than one stories.
The Sumo acquisition arms Tencent a mixture of AAA and indie content material. Alongside LittleBigPlanet 3 and by-product Sackboy, each printed via Sony, Sumo used to be additionally in the back of Hitman 2. It additionally owns UK-based indie developer The Chinese Room (Everybody’s Gone to the Rapture) and Red Kite Games, easiest recognized for ports of video games like Two Point Hospital. In February, the studio bought Poland’s PixelAnt Games for 250,000.
The trade will take pleasure in Tencents wide videogaming ecosystem, confirmed business experience and its strategic assets, which is able to assist protected and additional the aspirations and long-term good fortune of Sumo, Ian Livingstone, non-executive chairman of Sumo, mentioned in a observation.
Between Microsoft’s acquisition of ZeniMax and EA’s deal for Codemasters, 2021 is already turning out to be a blockbuster yr for online game consolidation. Other scorching offers come with Epic Games acquisition of Fall Guys studio Mediatonic, Sony’s acquire of Returnal developer Housmarque and Facebook’s takeover of BigBox VR via its Oculus arm.
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