Tencent to buy out rest of Sumo Group in gaming investment

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Sumo creates games for other publishers, including for Apple’s Arcade service, Xbox Game Studios, Electronic Arts, Activision Blizzard and Ubisoft Entertainment

Tencent has agreed to buy the rest of Sumo Group it does not already own, adding to a string of gaming investments by Chinese social media and gaming giant. The shares jumped the most on record.

Tencent is the world’s largest gaming company, with stakes in giants such as Riot Games and Epic Games. The company has said it plans to plough a larger portion of its incremental profits this year into cloud services, games and video content, to fend off competition from the likes of Bytedance and growing scrutiny from Beijing.

Sumo creates games for other publishers, including for Apple’s Arcade service. Other clients and partners include Xbox Game Studios, Electronic Arts, Activision Blizzard and Ubisoft Entertainment, according to its website. The Tencent-Sumo deal follows the sale of one of Britain’s oldest games studios, Codemasters, which Electronic Arts bought for $1.2bn in December, beating out a rival bid from Take-Two Interactive Software.

 

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