Tencent agrees to acquire British developer Sumo Digital for $1.27 billion

Shawn Knight

Posts: 13,442   +132
Staff member
Why it matters: Tencent has been growing its portfolio at a feverish pace as of late, and it only continues this week with the acquisition of British video game developer Sumo Digital. The Chinese tech conglomerate will pay 513 pence in cash for each Sumo share, a 43 percent increase over Sumo’s closing price of 358 pence on July 16. In total, the deal is valued at $1.27 billion.

Sumo was founded in 2003 and has put out a steady stream of titles ever since. Notable games developed by Sumo include Forza Horizon 2, LittleBigPlanet 3, Hitman and Hitman 2 and Crackdown 3, just to name a few.

Carl Cavers, one of the original co-founders, said the opportunity to work with Tencent is one they 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,” Cavers added.

As mentioned, Tencent has been quite busy lately. Late last year, the company attempted to merge video game streaming sites Huya and DouYu, but those plans were recently struck down by China market regulators due to antitrust concerns. Tencent earlier this year also teamed up with Chinese police to help bust a massive video game cheating operation.

Sumo isn’t the only British video game developer to change hands recently. In December, EA announced plans to scoop up Codemasters for $1.2 billion.

Image credit: Tingshu Wang, Reuters

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Lounds

Posts: 899   +798
Hardly. There's no need to overreact, we have enough of that through the BBC already.
There's very few British businesses that aren't owned by bigger foreign companies or investments. I'd say the biggest one to worry about is ARM.
 

Danny101

Posts: 1,837   +791
Breaking News!

"More Chinese propaganda, including communist propaganda, will now be infused into game studio Sumo future titles."

THE REAL PANDEMIC!!!
 

Burty117

Posts: 4,193   +2,212
What do we have left in the UK (game dev wise) that's still owned by the British?

Jagex (RuneScape)
Dovetail Games (simulation games)
FacePunch Studios (Rust)
Hello Games (No Man's Sky)
Slightly Mad Studios (Project Cars)

There's plenty of other Devs here but they're all owned by the Japanese, Americans or Chinese these days.
 

R00sT3R

Posts: 481   +1,323
Carl Cavers, one of the original co-founders, said the opportunity to work with Tencent is one they just couldn’t miss

Yeah...seeing as you will pick up £20m+ for his share of the company.