Tencent is set to buy Sumo Group – which owns Sumo Digital (Sackboy: A Big Adventure, Crackdown 3), The Chinese Room (Everybody’s Gone to the Rapture, Dear Esther) and more – in a $1.27 billion deal.
As reported by GamesIndustry, the Chinese entertainment giant – which already wholly owns Riot Games (League of Legends) and 40% of Epic Games (Fortnite) – has backed Sumo Group’s approach on work-for-hire projects. While Sumo studios have created their own IP over the years, the group is best known for taking on projects from other companies. That’s led to it working on major licenses like Sonic and Sackboy among others.
Sumo Group CEO Carl Cavers said: “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.”
Tencent’s chief strategy officer James Mitchell wrote: “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. We believe the proposed transaction benefits all stakeholders, delivers compelling value for Sumo shareholders, while enhancing the Sumo business for the future.”
The deal has been agreed, but is subject to shareholder approval. The Guardian reports that Tencent has already received pledges to back the takeover from 27% of shareholders – while Tencent itself already owns 8.75% of Sumo.