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Tencent to buy Crackdown and Sackboy developer Sumo in $1.3bn deal

Tencent is set to buy Sumo Group in a deal worth $1.27bn (£919m), the companies have announced.

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gamesindustry.biz
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Darkborn62d ago

Tencent is really buying up everything. I'm surprised everyone is selling to them like this.

Rebel_Scum62d ago

They want/need capital I guess.

darthv7262d ago

No way they are worth that much. They are a support studio. I guess tencent decided to throw them an insane price that Sumo would be crazy to turn down.

Its like the godfather. "Im going to make you an offer you cant refuse"

UltraNova62d ago

Always the case.

Who owns the rights to Crackdown and Sackboy IPs though?

boing162d ago

I've heard some time ago, that they created a special unit that has a mission to search for acquirable devs all around the globe.

-Foxtrot62d ago

Going off their business practices they seem like a cancer in this industry

62d ago
blacktiger62d ago

chinese currency, no limit in printing, but they are selling in USD

PrinceAli62d ago

Maybe because they're a publisher of games with a history of success loool..?

barom62d ago

Even Microsoft can’t compete with that kind of money.

Zeref62d ago (Edited 62d ago )

Uhm yes they can.. What do you mean?

Zeref62d ago

Money talks, Besides, those developers don't need to worry about income anymore.

enkiduxiv62d ago

I doubt anyone that matters to the actual production of the games is getting a raise. The only thing that has changed is that now they can't buy any Winnie the Poo products for their kids.

SenorFartCushion62d ago

Well they’re allowed. America and China are leading the world in toxic capitalism.

n1kki662d ago

As publicly traded companies it's either they sell and potentially get more, or tencent initiates a hostile takeover and buys at least 51% of the shares. These companies might not even be amicable to the buy out but opt to take it because hostile takeovers are terrible.

+ Show (8) more repliesLast reply 62d ago
frostypants62d ago (Edited 62d ago )

Yep. A company that built itself by ripping off IP of small, innovative developers and out-marketing them. Tencent is everything wrong not just with gaming but corporate ethics in general, and the assymetric regulatory playing field we for some reason permit from the Chinese government. Egregiously corrupt companies like Tencent should be banned from the US market.

SenorFartCushion62d ago

The US market would take Tencent to dinner and have it naked on the bed by midnight if it could. America and China are as bad as each other

Lightning7762d ago

They can take Sumo those devs really aren't that great. Sack boys big adventure scored good however but Crackdown 3 wasn't great. They're 50/50 Sony will find a suitable replacement for Sack boy. MS desperately needs a suitable replacement for crackdown, if it's not already too late in terms of fanfare at this point.

Sumo to me isn't that big of a deal there are better devs out there.

SenorFartCushion62d ago

Crackdown 3 was cancelled and remade a few times. Hardly their fault.

darthv7262d ago

This is the same Sumo who made Outrun 2, 2006 Coast to Coast, Sonic Racing Transformed as well as Forza Horizon 2 on the 360. I think they are better than you give them credit for.

Wulfer61d ago

You might want to walk this statement back. Why else do you think this game goes for over $200 now?

https://www.ebay.com/p/5144...

62d ago Replies(1)
ScootaKuH62d ago

I'm surprised Sumo are valued so high

solideagle62d ago

yeah, thats what I thought. $1.3 billion is very high, Insomniac sounds like a bargain deal for Sony!

chadwarden62d ago

And they likely bought Housmarque and Bluepoint for even less than Insomniac.

phoenixwing62d ago

at the two above me,
it's easy to sell for less when you know you're in good hands business and culture wise. I mean sure you could scratch out some extra money elsewhere but are all the people you know going to be taken care of when you get bought out? Sony takes care of them. Basically you can tell who's a scheming money scumbag by what ceo's/execs choose to be bought by. In the end money talks but there's extras to consider sometimes.

roadkillers62d ago

I am as well. They do not own any IPs from my understanding...

DOMination-62d ago

Me too! After looking them up, it seems like they were the parent of other game studios: Lab42, Red Kite, Sumo India, The Chinese Room and PixelAnt Games and also have some cryptocurrency technology.

They may also still hold the IP for back when they were Gremlin Interactive.. back in the Amiga days they were really a dev of some repute.

ScootaKuH62d ago

Gremlin. Now there's a name that takes me back. Ocean as well.

Teflon0262d ago

They're not, it's likely them just throwing money around to make sure they have no opposition. Sumo is a valuable developer as they've assisted in alot of great games. They did LBP3, Sackboy, Sonic Transformed, I believe Assisted in both ModNation Racers and LBPK, Team Sonic racing, just to name the few off the top of my head that I own.

+ Show (1) more replyLast reply 62d ago
IRetrouk62d ago

I honestly thought ms or Sony would have nabbed them, seeing as they have worked for both on their respective ips, colour me surprised.

Bennibop62d ago

It's a lot of money for a group with no ips, what would they have worked on to keep so many studios and staff employed. For now at least they continue working on ips for the likes of Sony and Microsoft.

IRetrouk62d ago

Sony and ms have more than enough ips to keep em busy, the price would have been an issue though, that I agree with, just surprised is all🤷‍♂️

frostypants62d ago (Edited 62d ago )

Tencent doesn't exactly pride themselves on original IP anyway. They just steal someone else's. They only need developer drones.

Sephiroushin62d ago

They have enough to make them busy but there is no point in buying the studio that high, they could just make the developers some offers and thats it... heck every single developer could just quit the studio and with what is tensen left? no point in buying a studio with no IP you dont own the developers

IRetrouk62d ago

I already agreed that the price was high, still don't take away that they could have been used, and be useful to either ms or sony