Sumo Digital, the developer behind Sackboy: A Big Adventure, started with a single studio and now has fourteen other studios in five countries. The developer has also worked on other video games over the years, such as Crackdown 3 and Hood: Outlaws and Legends. It was recently revealed that Sumo Digital was fully acquired by the Chinese tech giant Tencent.
Tencent has stakes in other companies responsible for publishing and developing well-known video games, including the popular MOBA League of Legends. The tech company previously had an 8.75% stake in Sumo Digital as its second-largest shareholder, and now Tencent will fully acquire the developer. The acquisition will also help elevate Tencent's global presence.
News website Reuters reported about Sumo Digital's acquisition. The report stated Tencent would be buying Sumo Digital in a $1.3 billion deal. This will allow Tencent to add Sumo's titles to its "growing portfolio of chart-topping video games." According to the post, the deal will add Sumo Digital's racing and snooker games, like Hotshot Racing, to Tencent's current lineup of video games, including Call of Duty Mobile.
Daniel Ahmad, a senior video game analyst at Niko Partners, also provided information on the deal in a Twitter thread. According to the thread, Tencent's $1.3 billion deal is a 43% premium of Sumo Digital's current worth. Ahmad included a screenshot from LinkedIn that provided more details on Tencent's acquisition. Tencent is mainly acquiring Sumo for its experience in "developing and operating AAA games and live service games." Most of which were developed for clients including Sony, Microsoft, Sega, and more.
Carl Cavers, the CEO of Sumo, released a statement about the acquisition, which is also included in Ahmad's thread. Cavers said that the acquisition will be largely beneficial for Sumo Digital, including its staff, shareholders, and clients. He mentions that Tencent has demonstrated its commitment to backing Sumo's client work and will continue to invest in the developer. Cavers also said it will "bring another dimension to Sumo" and provide new opportunities that were previously out of reach for the company.
Tencent will continue to support Sumo in its ongoing projects, including the work-for-hire projects, and will have a "hands-off" approach regarding management. Cavers stated that he and the other co-founders of Sumo, Paul Porter and Darren Mills, will continue to reprise their roles in the company. On top of that, Cavers also stated that Sumo Digital could be an invaluable addition to Tencent, which seeks to "push into the AAA game space itself with its own projects."