Tencent is set to acquire Sumo Group, the United Kingdoms-based game development group behind titles like Little Big Planet 3, it’s spinoff Sackboy, Crackdown 3, and more. The Chinese web giant has been on a tear of studio investments and acquisitions over the past couple years with sixty-two gaming-related companies invested in or acquired by them in the first half of 2021 alone. The crazier thing: They have no intention of stopping any time soon.
Building Investments: Before lodging a full acquisition bid, Tencent likes to begin investing in studios that they may have an interest in later acquiring. In this particular case, Tencent owns a 8.75% share of Sumo, making them the second-largest shareholder in the company. All said and done, the Chinese conglomerate sees great worth in the studios group with their acquisition offer just shy of $1.3 billion, a 40% premium on the current trading price of Sumo Group’s share price.
Inside The Ring: Sumo Group is a lot more than just a single studio, in-fact the studio group is fourteen strong with studios spread out across five countries. The group includes two studios under the Atomhawk wing, ten under the Sumo Digital brand, Secret Mode, and last, but not least Timbre Games under Pipeworks Studios. Sumo Group will continue to work as an outsource studio to other game developers across the videogame industry, while also continuing to develop their own IP, just now with the financial backing of Tencent behind them (assuming the deal closes later this year/early next).
Image: Sumo Digital
