Multinational tech conglomerate Tencent will purchase Sumo Digital, the UK-based studio group behind Sackboy: A Big Adventure, Team Sonic Racing, and plenty of different video games for $1.27 billion. The two firms collectively introduced the acquisition and signify one other landmark deal that follows a handful of other big-name acquisitions made this 12 months.
Tencent has already owned an 8.75% stake in Sumo Digital since 2019. Sumo Digital as a collective group of studios has developed each unique IPs in addition to quite a few work-for-hire tasks over the course of its near-two decade lengthy historical past as a sport improvement studio. With this acquisition—carried out by Tencent’s subsidiary Sixjoy Hong Kong Limited—Sumo will see a 43% improve in its share worth. Sumo CEO Carl Cavers acknowledged that the deal will current the corporate with alternatives within the business “in ways which have previously been out-of-reach.”
Tencent has a powerful observe report for backing administration groups and their present methods. Alongside the acceleration of own-IP work, Tencent has demonstrated its dedication to backing our shopper work and has acknowledged its intention to make sure that we now have the mandatory funding to proceed specializing in work with our key strategic companions on turn-key and co-development tasks.
Sumo Digital’s most up-to-date launch was Hood: Outlaws & Legends in 2021, however the studio has additionally continuously labored with Sony Interactive Entertainment to launch a number of PlayStation-exclusive titles akin to Sackboy: A Big Adventure and LittleBigPlanet 3, selecting up the place collection creators Media Molecule left off. The studio has additionally labored on different fashionable franchises, akin to SEGA’s Team Sonic Racing in addition to Xbox Game Studios’ Crackdown 3.
Back in 2019, Sumo Digital introduced that it will be increasing with a new office in Warrington, England, totaling eight workplaces globally. Later in 2020, it revealed that it was engaged on 21 different projects, a lot of which had been work-for-hire tasks made in partnership with publishers akin to 2K, SEGA, and Xbox Game Studios. Sumo’s ongoing working relationships with assorted publishers are unlikely to alter following its acquisition by Tencent. The studio has promised to proceed with its specialization in shopper work according to their present technique.