Tencent Is Buying British Game Studio 'Sumo' For $1.27 Billion (theverge.com) 12
Tencent has announced plans to buy British video game company Sumo Group for $1.27 billion. The Verge reports: The Chinese tech giant already has an 8.75-percent stake in the developer, as Gamesindustry.biz reports, and the offer represents a 43-percent premium on Sumo's current valuation. Based in Sheffield, England, Sumo's well-regarded core studio Sumo Digital has carried out contract work for many of the biggest names in gaming. It developed Sony's PlayStation 5 launch title Sackboy: A Big Adventure and was the primary studio behind Microsoft's Crackdown 3 for Xbox consoles and PC. In 2017 Sumo released Snake Pass for multiple platforms, its first foray into original IP.
"The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles," says Sumo CEO Carl Cavers in a statement. "The opportunity to work with Tencent is one we 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 says Tencent has "demonstrated its commitment to backingâ Sumo's client work, as well as its own original IP, so things are unlikely to change too quickly. The buyout does, however, give Tencent yet another foothold in the international gaming industry, following prominent investments in companies like Epic, Riot, Activision, and Ubisoft. "Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the UK and abroad, supporting Sumo in the market for top-notch creative talent, and the UK as a hub for game innovation," says Tencent's chief strategy officer James Mitchell. "We believe the proposed transaction benefits all stakeholders, delivers compelling value for Sumo shareholders, while enhancing the Sumo business for the future."
"The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles," says Sumo CEO Carl Cavers in a statement. "The opportunity to work with Tencent is one we 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 says Tencent has "demonstrated its commitment to backingâ Sumo's client work, as well as its own original IP, so things are unlikely to change too quickly. The buyout does, however, give Tencent yet another foothold in the international gaming industry, following prominent investments in companies like Epic, Riot, Activision, and Ubisoft. "Tencent intends to bring its expertise and resources to accelerate the growth of Sumo both in the UK and abroad, supporting Sumo in the market for top-notch creative talent, and the UK as a hub for game innovation," says Tencent's chief strategy officer James Mitchell. "We believe the proposed transaction benefits all stakeholders, delivers compelling value for Sumo shareholders, while enhancing the Sumo business for the future."
Why? (Score:5, Interesting)
Re: Why? (Score:1, Funny)
and it'd be much cheaper for TenCent to just make original games in China
So sayeth yet another fucking beancounter.
"It's often claimed that China is only known for two achievements, noodles and gunpowder. This is obviously incorrect; someone would definitely have created a sauce to go with those noodles."
Re: (Score:3)
They are buying a proven development studio in the UK, so they are presumably expecting to have them develop PS5 and XBOX titles based on established Tencent properties that are currently mobile only.
Ten Cents? (Score:2, Offtopic)
US$1.27B? For anyone else wondering, that's 12,700,000,000 decacents.
Selling to chinesee corporations is ... (Score:5, Informative)
... selling to the chinese gov, the ccp. No less. There is no independent enterprising in china. All chinese companies are bound to a business model that implies the chinese gov can take over top management when they see fit. Remember what happened to Jack Ma.
Re: (Score:2)
The wumao come out like clockwork anytime the great and glorious CCP is questioned. How's that social credit score?
$1.27 Billion, for what?! (Score:1)
Re: (Score:1)