Saturday, July 24

China’s Tencent is buying the video game developer behind Hitman 2, Team Sonic Racing, and LittleBigPlanet 3 for $1.3 billion

  • 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

Epic Games
, 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.

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