Tencent reveals its intent to add Sumo Digital Ltd to its list of gaming subsidiaries — the acquisition deal should be worth $1.27 billion even though the Chinese digital company has up to a 10% stake with Sumo Group. Once the acquisition is final, Tencent’s stake is expected to increase by 43% premium on the British video game company’s current value.
This acquisition is a combination of both the Chinese and British gaming infrastructure which is expected to yield maximum productivity. While Sumo Group has reportedly developed games for top-notch studios in the industry, including Microsoft’s Crackdown 3 (its console is exclusive for PC and Xbox), and Sony’s PlayStation 5 Sackboy.
Then in 2017, Sumo Digital released its first foray into original IP — the developer dubbed this game “Snake Pass” that is accessible on all platforms.
According to the chief executive of the British video game developer, Carl Cavers, he acknowledged his partners such as Paul Porter, Darren Mills that founded Sumo Digital — their respective commitment has bolstered Sumo’s reputation to be recognized by the Chinese.
“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,” Carl said.
Aside from the commitment, Carl’s partners have portrayed overtime, Sumo’s CEO noted Tencent is also committed to supporting the British clients as well as its products — his words depict Tencent is on the edge to succeed with the acquisition since both parties will benefit from the deal.
“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,” according to Tencent’s chief strategy officer James Mitchell.
This deal will place Tencent and Sumo in a domineering position in the international gaming industry to easily compete with other top-notch developers such as Ubisoft, Epic, Activision, etc. — likewise Sumo Group. “We believe the proposed transaction benefits all stakeholders, delivers compelling value for Sumo shareholders while enhancing the Sumo business for the future,” James said.