Samreen Ahmad · · 1 min readReport: Tencent to acquire UK videogame developer Sumo for $1.27b
“China’s Tencent will buy British video game developer Sumo in a US$1.27 billion deal, it said on Monday, adding new titles to its growing portfolio of chart-topping video games,” Reuters reported, citing sources.
Details:
- The acquisition will add Sumo’s racing and snooker games to Tencent’s growing library of titles, which already includes blockbusters like the mobile version of the first-person shooter video game, Call of Duty.
- Following the announcement of the deal, the UK-based firm’s shares jumped 42% to a record high during UK trading hours on Monday.
Dive deeper:
- The takeover comes days after China’s market regulator blocked Tencent’s plans to merge game-streaming sites Huya and DouYu on antitrust grounds.
- Tencent posted US$73.9 billion in revenue in 2020, with its biggest earnings coming from its value-added services segment, which includes virtual offerings such as video games and social media. (Read: Tencent Music’s business model could offer clues on Spotify’s ambitions)
Currency converted from British pound to US dollar: 1 pound = US$1.37
Editing by Miguel Cordon and Arpit Nayak
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