The companies confirmed on Monday that the British video gaming company Sumo Group will be bought by the Chinese tech giant Tencent Holdings. Tencent Holdings is already a shareholder in the company with an 8.57percent stake and the recent offer is 43% above its current valuation. The acquisition will happen in a $1.3 billion deal.
Sumo has recently launched Sackboy: A Big Adventure which was Sony’s PlayStation 5 launch title. The company is also behind some popular games like Microsoft’s Crackdown 3 and Snake Pass. Carl Cavers, CEO of Sumo, told that the opportunity to work with Tencent “would bring another dimension to Sumo”. Sumo’s executive chairman Ian Livingstone commented that “Tencent’s broad video-gaming eco-system” will benefit Sumo.
Tencent will make its territory larger in the field of video games through this deal.