Tencent acquires UK game developer Sumo in a deal worth $1.27 billion

tencent acquires uk game developer sumo in a deal worth 1

Sumo, founded in 2003, has a lot of popular games in its portfolio, including Forza Horizon 2, LittleBigPlanet 3, Hitman and Hitman 2, Crackdown 3, and many more.

Chinese internet giant Tencent has acquired UK-based game developer Sumo. Tencent has been expanding rapidly recently and is just behind Sony in terms of video game revenue. The deal announced by Tencent is valued at $1.27 billion and will continue to push the Chinese company to the summit of global video games production and sales.

Sumo, founded in 2003, has a lot of popular games in its portfolio, including Forza Horizon 2, LittleBigPlanet 3, Hitman and Hitman 2, Crackdown 3, and many more. The company has several chart-topping video games that continue to drive the growth of its portfolio. The purchase is bound to boost Tencent’s global outlook, as it would add several of Sumo’s highly successful video games to its repertoire. Sumo has 14 studios spread across five countries, where it develops its video games.

Carl Cavers, one of the 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.

Tencent holds an 8.75% stake in Sumo, and it is the second-largest shareholder of the company. Sumo has continued to rise constantly, and in 2017 it got listed on the London Stock Exchange. The takeover comes days after China’s market regulator blocked Tencent’s plans to merge game-streaming sites Huya and DouYu on antitrust grounds.