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Tencent Paying $1.27 Billion for Sumo U.K. Games Developer

China Coronavirus Entertainment social

20.07.2021 - 13:15

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variety.com

variety.com:

Patrick Frater Asia Bureau ChiefChinese social media and entertainment giant Tencent is adding to its already huge portfolio of games studios with an agreed deal to buy U.K.-based game developer Sumo.

The deal is valued at £919 million or $1.27 billion.Sumo is best known for “Sackboy: A Big Adventure,” a title published by Sony, as well as racing games based on Sega’s “Sonic the Hedgehog” franchise.Tencent has owned 8.75% since 2019.

It is now offering £5.13 per London Stock Exchange-listed share.The move comes despite a regulatory squeeze on China’s tech sector.

Companies including Tencent have been punished for mishandling private data, anti-competitive practices and failure to properly notify authorities of their acquisition plans..

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