Why it matters: Tencent, for example, has seen rapid growth lately, and will only continue this week with the acquisition of British video game developer Sumo Digital. The Chinese tech forum will pay 513 pence in cash per share of sumo, which is a 43% increase over sumo's closing price from June 35 to July 16. In total, the deal is worth $1.27 billion.
Sumo was founded in 2003 and has been offering permanent titles ever since. Notable games developed by Sumo, Forza Horizon 2, LittleBigPlanet 3, Hitman, Hitman 2, and Crackdown 3, to name a few.
The opportunity to work with Tencent is one that cannot be missed, said Karl Kuers, one of the founders. "This adds another dimension to sumo and creates opportunities for us to lock in our true character in this amazing industry, in ways that weren't available before," Covers added.
As mentioned earlier, Tencent has been very busy lately. Late last year, the company attempted to merge video game streaming sites Huya and DouYu, but the plans were recently scrapped by Chinese market regulators due to antitrust concerns. Tencent also worked with Chinese police earlier this year to help with a large-scale video game scam. Sumo isn't the only British video game maker to change their hands lately. In December, EA announced plans to increase Codemasters by $1.2 billion.
Image source: Tingshu Wang, Reuters
Tencent agrees to buy British developer Sumo Digital for $1.27 billion
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