Tencent to acquire Sumo, the British video game developer behind Team Sonic Racing and LittleBigPlanet 3.
Details: The Chinese tech giant is offering 513 pence per share for the studio, in which it already owns an 8.75% stake, valuing it at $1.27 billion.
“The business will benefit from Tencent’s broad videogaming ecosystem, proven industry expertise and its strategic resources, which will help secure and further the aspirations and long-term success of Sumo,” Ian Livingstone, non-executive chairman of Sumo, said in a statement.
As the world's largest gaming company, Tencent owns League of Legends studio Riot Games, and has a financial stake in several publishers including Epic Games, Activision Blizzard, Ubisoft, Bluehole, and Supercell, along with chat platform Discord.
Context: If the deal goes through, Sumo will be the latest UK video games company to be purchased for more than $1 billion, following EA's acquisition of Codemasters in February, according to Business Insider.
The deal comes days after China's market regulator decided to block Tencent's plans to merge videogame streaming sites, Huya and DouYu, on antitrust grounds.