- Tencent said it’s buying video game developer Sumo for $1.27 billion.
- The Chinese tech firm already has an 8.75% stake in Sumo.
- Sumo’s titles include Team Sonic Racing and LittleBigPlanet 3.
- See more stories on Insider’s business page.
China’s Tencent is buying Sumo, the video game developer behind Team Sonic Racing and LittleBigPlanet 3, for nearly $1.3 billion.
Shares in Sumo, of Britain, jumped 42% on Monday to a record high.
Tencent, the world’s largest gaming company, is on the hunt to acquire foreign video game developers. It already has stakes in
, the company behind Fortnite, Riot Games, and Ubisoft.
Sumo has accepted Tencent’s offer of 513 pence (703 cents) cash per share, which values Sumo at £919 million ($1.26 million), the companies said Monday.
Sumo’s games include:
- Team Sonic Racing
- LittleBigPlanet 3
- Hitman 2
- Sackboy: A Big Adventure
- Crackdown 3
- Snake Pass
- Hood: Outlaws & Legends
Tencent already has an 8.75% stake in Sumo, making it the British developer’s second-biggest shareholder, Reuters reported.
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.
Insider has reached out to Tencent and Sumo for comment.