We have all heard about the Chinese Social media and entertainment company, Tencent. It has managed to come out with innovative products. It seems that the presence and library of this company has just expanded. This is because it has struck a deal with Sumo, which is a games developer company based in the UK.
This deal is one of the biggest deals in the gaming industry that we have seen in the recent past. It is valued at a whopping $1.27 Billion. Now, you may be wondering what is the company Sumo UK known for? Well, you ay heard about the game called Sackboy: The Big Adventure. It was a title published by Sony. The company is also known for making racing games on Sega’s Sonic the Hedgehog series.
Tencent Deal with Sumo: Regulatory squeezes?
The companies in China have been suffering from regulatory tightening by the Chinese authorities. This move was taken because of the latest practices of companies such as Tencent. There were allegations floating around that these companies were employing Anti Competitive practices. Further, they were engaging in vast delays and not notifying their acquisition plans to the proper authorities.
Tencent is on the road to becoming the gaming giant. It is already the biggest gaming company in the world. Any gaming company that you heard of – Ubisoft, Epic Games, Activision Blizzard and Riot, Tencent has acquired a stake in these companies. This growth rate has accelerated ever since the pandemic hit the world. Tencent has shown no signs of slowing down. Therefore, they have gone ahead to acquire 31 gaming studios just in the past one year.
The Co-founders of Sumo have also come up with their statement. It seems that they are going to stay in the business of gaming. It was found in Sheffield in the year 2003.