The Committee on Foreign Investment in the United States (CFIUS) is looking into Tencent's proposed purchase of Sumo Group.

The latter revealed this news to investors on Friday, October 29th, having been told about the investigation the day before. Tencent and Sumo say that they are in discussions with CFIUS and hope to resolve the matter by the end of 2021.

Sumo announced back in July that the Chinese games giant had put in a $1.27 billion bid to buy it, which it recommended the board accept.

The terms of this deal were accepted on September 10th, 2021, but it's unclear what this investigation means.

CFIUS started to look into Tencent's US games investments in September 2020, with both Fortnite firm Epic and League of Legends maker Riot coming under the spotlight.

In May of this year, it was reported that Tencent was in discussions with the US government to keep its stake in Epic Games and its ownership of Riot.

Given that Sumo is a British games company, some might be scratching their heads as to why the US government is getting involved in this deal. Though headquartered in Sheffield in the UK, the firm has operations in operations in the United States, including Oregon-based Pipeworks.