Tencent Acquires Sumo Digital Parent Company For $1.27 Billion

While many recognizes the United States or Japan to be a leading role for the video game industry, there is a large growing influence from China-based Tencent Holdings that is forming its own conglomerate over in the eastern hemisphere. In that past, Tencent has administered minor stakes in a selection of prominent developers including Yager Development, Marvelous, and even PlatinumGames as well.

As of late, the firm continues its purchases for the video game industry with a recent minor investment in Dontnod Entertainment. Alike with many of the other firms that Tencent infused funding into, the French developer looks at the opportunity to grow independently as it targets another production from the deal. Another arrangement from Tencent also includes DayZ developer Bohemia Interactive later on also.

According to a new report from Reuters, Tencent’s next venture includes the complete absorption of Sumo Digital parent company, Sumo Group for $1.27 billion. “The Board of Sumo firmly believes the business will benefit from Tencent’s broad videogaming eco-system, proven industry expertise and its strategic resources,” said non-executive chairman Ian Livingstone.

Elsewhere on Twitter from Niko Partners analyst David Ahmad, he comments on the acquisition for the new arrangement between Sumo Digital and Tencent Holdings. “Tencent will continue to support Sumo on the more than 40 projects it is working on, including the work for hire projects for clients.”

Previously, Video Game Chronicles reported on another potential purchase from Tencent on a prominent IP. In that, the domain for System Shock 3 and System Shock 4 are now in the ownership of Tencent Holdings, the publication indicates. You can read the full report by heading here.

Are you surprised by the purchase made by Tencent?

Source: Reuters