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Tencent acquires British developer Sumo Digital Group

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Chinese internet giant Tencent announced it has reached an agreement to buy British video game studio Sumo Digital Group for 919 million pounds (US$1.259 billion).

sumo digital group

Sumo’s board of directors has accepted the offer, which is for the entire capital of the company, according to a statement.

With 1,200 employees around the world, Sumo is a UK-based developer founded in 2003 with offices in India and Poland.

It is primarily known for having worked on flagship licenses for publishers such as Sega or Sony.

Its share price was up 41.95% to 508.17 pence on Monday morning around 09:40 GMT, almost matching the Chinese company’s offer of 513 pence per share.

Tencent is a behemoth, owner of the WeChat app (messaging, news, social network, shopping), a must-have in China, but it’s also in video games, its largest revenue source. It owns shares of video game developers such as Epic Games and Ubisoft.

Tencent is pleased to be investing in Sumo since 2019 and sees this proposed alliance as the natural extension of our partnership,” explains James Mitchell, chief strategy officer of the Chinese group.

“Sumo will use its expertise and resources to accelerate its growth both in the UK and internationally,” he says.

Tencent is particularly interested in helping Sumo achieve its goal of developing its own video games.

The Chinese group will keep Sumo’s headquarters in Sheffield, northern England, while the British company will be delisted in London.

“We simply could not pass up the chance to work with Tencent. Sumo can now make its mark on this great sector in a way we haven’t been able to do before,” says Sumo CEO Carl Cavers.

For MetaNews.

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