US National Security Panel investigating Tencent

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Tencent is being investigated by the US National Security Panel for a purchase it will make. It is unclear when the process will end.

 

After large companies acquire other companies, they wait for approval from the relevant authorities in that country to approve the purchase. Once approved, the sale takes place officially and becomes part of the company. Mega companies like Tencent are also included in these rules. For many years, Tencent has increased its value by buying shares in many companies, large and small. That’s why it has become the world’s largest video game company with its shares.

Tencent bought Sumo Group for £919m

Headquartered in Sheffield, UK but with studios in the US, Sumo told Reuters that “Chinese mega-corporation Tencent has agreed to offer commitments to get approval from the US Foreign Investment Committee (CFIUS) that is evaluating the deals. he did”. The US Homeland Security Panel is investigating the deal as it could be a national security issue. Also investigating US TikTok sale

Trump once referred to the US National Security Panel as “the watchdog on China deals”.

Tencent’s intention to acquire Sumo, developer of Sackboy: A Big Adventure and Crackdown 3, was announced in July. At that time, Sumo’s bosses were eager for the deal to happen. Tencent previously held an 8.75 percent stake in Sumo, which was involved in Forza Horizon 2, LittleBigPlanet 3, Disney Infinity, and Team Sonic Racing development.


Sumo has offices in the UK in Sheffield, Nottingham, Newcastle, Leamington Spa and Warrington. Also, Sumo is the parent company of The Chinese Room, developer of Everyone’s Gone to the Rapture. In addition to these, the company also owns Atomhawk, Lab42, PixelAnt, Red Kite Games and Sumo Pune studios, as well as Oregon-based Pipeworks, which works on console versions of Terraria.

Sumo and Tencent stated that they established a relationship with CFIUS regarding the acquisition before the end of the year.

Tencent owns significant stakes in a number of game developers, including League of Legends producer Riot, Clash of Clans studio Supercell, and Fortnite developer Epic Games. This makes the company the world’s largest video game company by revenue. The company is currently valued at $21.1 billion. It’s worth more than any game developer. The value of a large company such as Electronic Arts, a popular developer and publisher, was announced to be $ 5.54 billion in 2020.

Tencent supports other game developers and publishers by investing in them, but that doesn’t mean the company has no secret plans. Although Tencent has large enough stakes to have a say in gaming companies, it cannot appoint representatives to its boards of directors. This makes the company seem more sympathetic.