Tencent acquired Sumo Group for £919 million ($1.27 billion) in July, but now, a U.S. national security panel is investigating the deal as a potential threat to national security.
As reported by Reuters, Tencent agreed to "offer undertakings to gain approval from the Committee on Foreign Investment in the United States," which is responsible for evaluating deals in light of how they might affect national security. The panel is also examining the TikTok deal, though how they evaluate deals is unclear. Even Reuters calls the panel a "secretive" one.
Tencent And Sumo's Deal Now Under Investigation By U.S. National Security Panel
Sumo, makers of LittleBigPlanet and Forza Horizon 2, among others, is based in Sheffield, England, but operates a number of studios around the world, including some in the United States. Their most recent title was the PlayStation 5 launch game Sackboy: A Big Adventure.
Tencent already owned an 8.75% stake in Sumo prior to the acquisition. It has also owned a 40% stake in Epic Games for almost a decade, though the security commission shows no signs of investigating that relationship further.