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Tencent to acquire British video game company Sumo Group in $1.3 billion deal

cormack12

Gold Member
Source: https://www.reuters.com/world/uk/tencent-buy-british-video-game-company-sumo-13-bln-deal-2021-07-19/

July 19 (Reuters) - Chinese tech giant Tencent Holdings (0700.HK) will buy video game company Sumo Group (SUMO.L) in a deal that values the British firm at 919 million pounds ($1.27 billion), the companies said on Monday.

Sumo's shareholders will get 513 pence in cash per share, Tencent said. The offer is at 43% premium to the Sumo's last closing price of 358 pence. The share has risen multifold since its listing on LSE's junior market AIM in 2017 at 100 pence.

Tencent has an 8.75% stake and is the second-biggest stakeholder in the company, which has 14 studios in five countries with more than 1,200 employees.

"The Board of Sumo firmly believes the business will benefit from Tencent's broad videogaming eco-system, proven industry expertise and its strategic resources," Sumo's non-executive chairman Ian Livingstone said.


 

reksveks

Member
43% premium, how does that typically compare?

 
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nush

Member
 

Stuart360

Member
I said about Tencent and possibly Google, Amazon, and some other unknown companies that want to get in on the act, and how i'd rather Microsoft and Sony buy up everyone as at least games will still be released in the tradional sense, and in Microsofts case, on Xbox and PC. With Tencent and the rest buying studios, who knows what they will do with them in the future. Streaming only?, mobile only?.
I said this would happen.
 
I said about Tencent and possibly Google, Amazon, and some other unknown companies that want to get in on the act, and how i'd rather Microsoft and Sony buy up everyone as at least games will still be released in the tradional sense, and in Microsofts case, on Xbox and PC. With Tencent and the rest buying studios, who knows what they will do with them in the future. Streaming only?, mobile only?.
I said this would happen.
if there are new IPs coming out that are streaming/mobile only then i'm less likely to be interested in them. so whatever Tencent makes, if anything, then good for them but i ain't playing it probably
 

M1chl

Currently Gif and Meme Champion
Tencent dont have a gaming console for now, so the chances of any IP coming from Sumo going multiplatform will be higher.

Yes im a fanboy.
Well the issue is, that behind Tencent there is China, which not going to have the best intention for "the west". I am not saying that are going to make shit games, but what I worry about is the influence of their new bosses.
 

anthony2690

Gold Member
That is a LOT of Money for sumo digital, especially as they own no ips, other than snake pass. (On the top of my head)

Wonder what Tencent saw in sumo digital, fantastic outsource studio, but what will Tencent do with them?
 
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reksveks

Member
I don't think us British own anything in this country even our houses is all foreign investment.
Beauty of globalisation but it's all right, we still have those things we stole during the height of the Empire.

But going back to the point, protectionism in certain industries makes sense but not sure about games industry.
 

lh032

I cry about Xbox and hate PlayStation.
Well the issue is, that behind Tencent there is China, which not going to have the best intention for "the west". I am not saying that are going to make shit games, but what I worry about is the influence of their new bosses.
good game, bad game.....If im not getting it, no one is getting it.

angry go away GIF
 

Jaxcellent

Member
Damn, Sumo made the amazing 360 Outrun port, IF, in the future they will work on only mobile games, I'll probably be disappointed.

But then again, I diden't buy their last toon arcade racer, i expect alot of people dident. Now they made the choice to make money a different way. Great studio, it was only a matter if time imo...
 

Fat Frog

I advertised for Google Stadia
Why does Europe not seem to care that China is buying it completely?
We care but don't be blind EU is a giant pie for China... US (GE bought the energy branch of Alstom), Saoudis and so many others.
End of politic topics you started with others...
 

Dr.Morris79

Member
Well, this seems INCREDIBLY healthy for the video games industry and popular culture in general. I'm sure nothing bad will come from state approved companies in totalitarian countries buying up vast swathes of the industry!

The future is glorious!
The west is utterly fucked under China and it'll keep growing, in every industry

I'd say that it's getting so bad we might as well be teaching our kids to speak Chinese in schools, it'll help when they're older.
 
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