Tencent buys game developer Sumo Group for nearly $1.3 billion

Sumo Digital is a large-scale game developer. It has ten game studios under the Sumo Digital brand, and four game studios belong to the Sumo Group. In addition, it also owns the British visual design company Atomhawk. These fourteen game studios span five different countries. Since their establishment and headquarters are in the UK, the focus of their work is also in the UK, with a total of more than 1,200 employees.

According to Reuters, Tencent will acquire Sumo Group at a price of 513 pence per share for a total price of 919 million pounds (approximately US$1.27 billion) and become a subsidiary of Tencent. At the close of the market last Friday, Sumo Group’s price per share was 358 pence, and Tencent’s bid was equivalent to a premium of approximately 44%. Tencent has already purchased some shares of Sumo Group in 2019, and its current shareholding ratio is about 8.75%. Sumo Digital Chairman Ian Livingstone said:

“The Board of Sumo firmly believes the business will benefit from Tencent’s broad videogaming eco-system, proven industry expertise and its strategic resources.“

Over the years, Sumo Digital has grown into the world’s largest independent third-party game studio, participating in the production of dozens of games. In addition, Sumo Digital has also reached strategic partnerships with Microsoft Studios, Sony, and Apple.

Tencent is now the world’s largest video game company, and it also holds shares in game developers such as Riot Games, Funcom, Supercell, Dontnod Entertainment, Netmarble, and Epic Games. This acquisition will further expand Tencent’s influence in the gaming market.