A US national security panel is probing Sumo Group’s $1.27 billion (about Rs 9,518 crore) acquisition of Tencent Holdings, the British videogame maker said on Friday, in a possible blow to the Chinese internet giant.
Sumo, which has studios in the United States and four other countries, said Tencent had agreed to offer undertakings for obtaining approval from Committee on Foreign Investment in the United States (CFIUS), which assesses deals to ensure that they do not harm national security.
Secret task force, which is also investigating US sales of the video-sharing app TIC Toc, had tightened its probe into sugar deals under the former president Donald Trump.
Tencent struck a deal with Sumo in July, just days after China’s market regulator blocked its plans to merge videogame streaming sites. Happened And douyu, on the grounds of mistrust.
The British firm said on Friday that Sumo and Tencent are in talks with CFIUS to get approval for the acquisition before the end of the year.
Sheffield-based Sumo’s customers and partners include Microsoft’s xbox game studio, Apple and alphabet Google, among others.
The deal will bring Sumo’s racing and snooker game alongside Tencent’s more high-profile games that include a “mobile version.”Duty“.
© Thomson Reuters 2021
.