Chinese Video Game Company, Tencent, Aquires 10 Percent Stake in Sumo Digital The Developer of CRACKDOWN 3

Chinese Video Game Company, Tencent, Aquires 10 Percent Stake in Sumo Digital The Developer of CRACKDOWN 3

Sumo Digital, the developer who was contracted by Microsoft to work on Crackdown 3, was recently acquired by Tencent, the lrgest gaming company in China.

By Vames - Nov 24, 2019 08:11 PM EST
Filed Under: Multiplatform
Source: Games Industry

The Chinese technology company, Tencent, is investing a lot in the video game industry as it acquired another firm in the form of Sumo Group, the owner of Sumo Digital.

From what we have gathered so far, Tencent has entered an agreement with Perwyn, a company that is a huge investor in Sumo Group to acquire 15 million shares, which will allow Tencent to command 9.96 percent of the developer that aided Microsoft in the creation of Crackdown 3.

Once the folks at Perwyn sold their shares to Tencent, their holdings in the Group will fall to around 17.38 percent, so they will still have majority shares over Tencent at the end of the day.

"We are glad to invest in Sumo Group, a leading independent co-development studio," said the head of Tencent Games Steven Ma. "We look forward to supporting Sumo's growth and exploring collaborations with the Company to bring more interactive entertainment experiences to global audiences."

"We are delighted that Tencent have chosen to acquire a shareholding in the company, and we look forward to working with Tencent to explore co-development opportunities.

Here what Carl Cavers, CEO of Sumo Group, had to say:

"When Perwyn invested in Sumo Digital in September 2016 we were a private company with annual revenue of around £24m and operated from three studios in two countries. We are now a public company and, following the recent announcement of our new studio in Warrington in the northwest of England, now have ten studios in three countries and reported revenue of more than £38 million for the year ended 31 December 2018.

"I would like to thank Perwyn, once again, for their original investment and for their ongoing support of the business."

So far, Tencent has interest holdings in the likes of Activision, Blizzard, and is the owner of 50 percent shares in League of Legends.

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