Chinese tech giant Tencent Holdings will buy UK video game holding Sumo Group in a $ 1.27 billion deal.
The amount that Sumo shareholders will receive is based on a 43% premium to the latest closing price. It is pertinent to add that Sumo shares have grown 3.6 times since their listing in 2017. Tencent already owns 8.75% of the shares and is the second largest shareholder in the company, which has 14 studios in five countries and employs more than 1,200 employees.
“The Sumo Council firmly believes that the business will benefit from Tencent’s vast video game ecosystem, proven industry expertise and its strategic resources,” a source quoted a Sumo spokesperson as saying.