We’ve been keeping a fairly close eye on the encroaching industry domination represented by Chinese tech conglomerate Tencent of late. For those to whom that assortment of words and brand names means absolutely nothing, let me fill you in.
Over the past few years, this company – which had its humble beginnings in 1998 as a small advertising group – has been indiscriminately hoovering up shares and, in some cases, total ownership of a variety of notable names in gaming.
A series of canny purchases and wise investments have rocketed the firm to (by numerical technicality) the position of highest-valued company in the video game industry. It’s safe to say they’re now worth a tad more than ten cents. Perhaps time for a rebrand? I suppose ‘Tenbillion’ comes off a bit braggy.
A series of unfortunate events
Ubisoft, Epic Games, Remedy, Marvelous, Dontnod, Klei, Platinum, Bohemia Interactive, Roblox, Playtonic and Krafton are just a handful of companies that have had a close encounter of the monetary kind with Tencent. Last July, it was announced that Sonic and SEGA All-Stars Racing developers Sumo Group would be joining the ranks.
However, as these kinds of things tend to be, the deal was mired in all sorts of legal red tape for the greater part of 2021. Specifically, breaths were being held at both corporate entities over whether the UK High Court (who lord over brave old Britain, from where Sumo Group, and myself, hail – hi, mum) would sign off on the acquisition. Now, as GameIndustry.biz reports, the ink’s been dried: Sumo are henceforth a Tencent property.
End of an Era
“The [company] announced to its investors this morning that the High Court of Justice in England and Wales sanctioned the acquisition on January 13,” states the report, “with this order due to be delivered to the Registrar of Companies later today.” A transitionary period will now be actioned for Sumo Group, which will doubtless entail rearrangement of senior management and a restructuring of the company’s internal policies and dynamics. Gotta homogenize.
The early signs of such changes have become immediately apparent. “Dealings in Sumo shares on the AIM, part of the London Stock Exchange, were suspended at 7:30 a.m. this morning and the admission to trade in these shares will be cancelled from 7 a.m. tomorrow.” In other words, Sumo effectively no longer exists as an entity in its pre-Tencent form. How quickly these things can happen, eh?
What’s next for Sumo?
Sumo has also announced that, as of the merger, “Ian Livingstone, Michael Sherwin and Andrea Dunstan are no longer non-executive directors for the group.” See, what did I say? I wish those of the Houses of Livingstone, Sherwin and Dunstan the very best in whatever new endeavors they embark on, free from the cumbersome shackles of big tech.
Incidentally, the deal itself was valued at $1.27 billion, making this a very pricey addition to Tencent’s veritable Infinity Gauntlet of studios – not to mention one which evinces the pure amount of cash they have to chuck about. Opinions might be divided as to the ethics and/or implications of their ongoing growth, but it’s hard to deny they’ve got the coffers to back up their gumption.
What’s your take on all this? How do you feel about Sumo having entered, ahem, the ring? Let us know!
Via, GamesIndustry.biz.
