White House to review China’s takeover of British video game maker
While video games are generally not considered a national security issue, the committee has reportedly had discussions with Tencent about its stakes in Epic Games and Riot Games, the U.S. companies behind. Fortnite and League of Legends, on how Americans’ data is stored.
Voluntarily returning the deal to authority would make it more difficult for the United States to try to derail the takeover at some point in the future. The committee can choose not to investigate the deal or leave the final decision to President Joe Biden.
Jefferies analysts said the deal could lead to regulatory review, but is likely to continue.
Tencent said it plans to keep Sumo’s headquarters in Sheffield and invest in the business. It will also keep Sumo Managing Director Carl Cavers in his post, as well as co-founders Paul Porter and Darren Mills.
Sumo’s shares, which went public in 2017, have more than quadrupled amid a global video game boom.
It follows an agreement by the American company Electronic Arts to buy the British developer Codemasters in February and the takeover of the British company Jagex, maker of Runescape, by the private equity firm Carlyle.
Tencent also owns UK studio Splash Damage as well as a stake in Frontier Developments.