Tencent is set to buy Sumo Digital, developer of Sackboy: A Big Adventure in a deal reported to be worth $1.27 billion (£919 million).
The UK-based Sumo Digital also created Crackdown 3 and Team Sonic Racing, and is now set to be the latest game developer bought by the Chinese giant.
It’s another huge deal for TenceNt!
Gamesindustry.biz reported that the mammoth deal will see investors earn a reported 43% increase per share. Yikes! Tencent already owns a small stake in Sumo. This deal, however, will give the company a stronger foothold in Sumo.
“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,” said Sumo chief Carl Cavers.
“Tencent has a strong track record for backing management teams and their existing strategies.
“Alongside the acceleration of own-IP work, Tencent has demonstrated its commitment to backing our client work and has stated its intention to ensure that we have the necessary investment to continue focusing on work with our key strategic partners on turn-key and co-development projects.”
The $1.3bn deal price is a 43% premium on what Sumo is currently worth.— Daniel Ahmad (@ZhugeEX) July 19, 2021
Tencent has acquired a number of European companies recently such as Funcom, Yager and 10 Chambers.
Sumo Digital’s breadth of experience in game dev, including AAA and online games, makes it a good fit.
Who’s next for Tencent?
Tencent has shares in several video game companies across the world including Activision Blizzard and Ubisoft as well as Epic Games, and more.
Which company do you think could be next on Tencent’s radar? Let us know on our social media channels.
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Featured Image Credit: Sony/Sumo Digital