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Sumo expects Tencent acquisition to take place next month

Sumo expects Tencent acquisition to take place next month

UK game firm Sumo Group has said that its acquisition by Tencent should be going through in January.

In a release to investors, the company said that the United States' Committee on Foreign Investment in the United States (CFIUS) has concluded its investigation into the deal and that no action was going to be taken. The UK is seemingly not taking any action under the National Security and Investment Act 2021, either.

As a result, Sumo has laid out the timetable for its acquisition by Sumo; it reckons that it will be approved on January 13th, 2022, with the firm's shares being suspended four days later on January 17th and trading cancelled the following day.

CFIUS has been looking into Tencent's investments and interests abroad since September 2020. This is part of the US' growing paranoia around China and – so far – has impacted Epic Games and League of Legends maker Riot. The Sumo-Tencent deal came onto CFIUS' radar thanks to the former owning Oregon-based Pipeworks

Sumo announced back in July 2021 that Tencent intended to buy it in a deal worth $1.27 billion.


PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site PCGamesInsider.biz. In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for GamesIndustry.biz, VGC, Games London, The Observer/Guardian and Esquire UK.

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