China’s Tencent is buying the video game developer behind Hitman 2, Team Sonic Racing, and LittleBigPlanet 3 for $1.3 billion

People walking past the Tencent headquarters in the southern Chinese city of Shenzhen.
People walking past the Tencent headquarters in the southern Chinese city of Shenzhen, in Guangdong province.

  • Tencent said it’s buying video game developer Sumo for $1.27 billion.
  • The Chinese tech firm already has an 8.75% stake in Sumo.
  • Sumo’s titles include Team Sonic Racing and LittleBigPlanet 3.
  • See more stories on Insider’s business page.

China’s Tencent is buying Sumo, the video game developer behind Team Sonic Racing and LittleBigPlanet 3, for nearly $1.3 billion.

Shares in Sumo, of Britain, jumped 42% on Monday to a record high.

Tencent, the world’s largest gaming company, is on the hunt to acquire foreign video game developers. It already has stakes in Epic Games, the company behind Fortnite, Riot Games, and Ubisoft.

Sumo has accepted Tencent‘s offer of 513 pence (703 cents) cash per share, which values Sumo at £919 million ($1.26 million), the companies said Monday.

Sumo’s games include:

  • Team Sonic Racing
  • LittleBigPlanet 3
  • Hitman 2
  • Sackboy: A Big Adventure
  • Crackdown 3
  • Snake Pass
  • Hood: Outlaws & Legends

Tencent already has an 8.75% stake in Sumo, making it the British developer’s second-biggest shareholder, Reuters reported.

If the deal goes through, Sumo will be the latest UK video games company to be purchased for more than $1 billion, following EA’s acquisition of Codemasters in February.

Sumo CEO Cavers said in a statement to Insider: “The three founders of Sumo, who work in the business, Paul Porter, Darren Mills and I are passionate about what we do and are fully committed to continuing in our roles. The opportunity to work with Tencent is one we just couldn’t miss.”

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Amazon’s $8.5 billion purchase of MGM will give it rights to James Bond, ‘Legally Blonde,’ ‘Robocop,’ ‘The Handmaid’s Tale,’ and much more. Here’s what the tech giant could own under the deal.

robocop original
Amazon now owns the rights to “Robocop,” among many other classic films.

  • Amazon is buying MGM for $8.45 billion, the companies announced on Wednesday.
  • From James Bond to “The Handmaid’s Tale,” MGM is getting a massive trove of movies and TV.
  • These are the highlights of the blockbuster acquisition.
  • Visit the Business section of Insider for more stories.

Amazon just dropped $8.45 billion to buy MGM Studios, the decades-old film studio that owns rights to some of the biggest movies and TV shows in the world.

In the press release announcing the deal, Amazon pointed to the “vast catalog” of “more than 4,000 films” and “17,000 TV shows” as the reason for the purchase – assuredly intended to bolster Amazon’s Prime video streaming service.

So, what’s Amazon getting for nearly $8.5 billion?

James Bond movies
A smattering of Bonds.

The decades-long catalog of James Bond films is among the “more than 4,000” films Amazon is buying, in addition to classic movies like “12 Angry Men,” “Silence of the Lambs,” “Thelma & Louise,” “Midnight Cowboy,” “Fiddler on the Roof,” “Dances with Wolves,” and “Raging Bull.”

Another major franchise Amazon gets in the deal: “Rocky,” as well as the more recent “Creed” films.

And that’s just movies.

In terms of television, Amazon’s getting more recent classics, like “Fargo,” “The Handmaid’s Tale,” and “Vikings.”

Beyond the titles specifically noted by Amazon, there are countless others that belong to the MGM Holdings catalog – though it’s not completely clear which movies and TV shows have rights split up between several companies.

MGM Holdings includes MGM Television, for instance, which counts “The Real Housewives” franchise among its titles. An MGM rep confirmed that “The Real Housewives” franchise is part of the deal, as well as “The Voice,” “Shark Tank,” and “Survivor.”

What we know for sure isn’t included in the deal is the vast library of MGM films from prior to 1986, which are controlled by Turner Entertainment Company.

Beyond what’s listed above, Amazon’s press release included “Basic Instinct,” “Legally Blonde,” “Moonstruck,” “Poltergeist,” “Stargate,” “Tomb Raider,” The Magnificent Seven,” The Pink Panther,” and “The Thomas Crown Affair” among the movie rights it acquired in the deal.

Amazon and MGM representatives were unable to clarify the full list of acquired movie and TV rights in the deal.

Got a tip? Contact Insider senior correspondent Ben Gilbert via email (, or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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Welbilt jumps 40% after Middleby announces it will acquire the foodservice equipment company for $2.9 billion

Wall Street
Chinese career agencies promise to help students land top-tier internships

Welbilt jumped as much as 40% on Wednesday after The Middleby Corporation announced it will acquire the Florida-based foodservice equipment company in a $2.9 billion all-stock deal.

Welbilt shareholders will receive a fixed exchange ratio of 0.1240x shares of Middleby common stock for each share of Welbilt in the deal which is expected to close in late 2021.

The offer price represents a 28% premium to Welbilt’s 30-day volume-weighted average price.

Both companies’ boards have unanimously approved the transaction with Carl Icahn, Welbilt’s largest shareholder with an 8.4% position, entering into a support agreement in favor of the transaction.

“Today’s announcement represents a milestone event for Middleby, Welbilt, and the Commercial Foodservice Equipment industry,” Timothy Fitzgerald, Middleby’s CEO, said of the acquisition.

“The combination of our two great companies creates a leading player with a comprehensive product line, global footprint, and advanced technologies and solutions that are well-positioned to serve our rapidly changing customer needs and capitalize on emerging industry trends,” Fitzgerald added.

After the deal goes through, Middleby shareholders will own about 76% of the combined entity, with Welbilt shareholders owning the remaining 24%.

The combined company will have $3.7 billion in 2020 sales and Middleby expects $100 million of annual cost synergies associated with the transaction to be fully realized within three years.

The law firm Johnson Fistel is investigating whether the proposed deal represents adequate consideration given analysts’ projections for future earnings and revenue growth.

Welbilt stock traded up 36.60% as of 12:18 p.m. ET, while Middleby stock traded up 5.88%.

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Nintendo is buying the North American studio behind ‘Luigi’s Mansion 3,’ a rare move for the 132-year-old Japanese company

Luigi's Mansion 3
“Luigi’s Mansion 3” on the Nintendo Switch has sold nearly 8 million copies since it launched on October 31, 2019.

  • In a rare move, Nintendo is outright buying a game-development studio: Next Level Games, the Canadian firm behind the smash-hit Nintendo Switch game “Luigi’s Mansion 3.”
  • Next Level Games and Nintendo have worked closely in the past, with Next Level taking on major franchises like “Punch-Out!” and “Luigi’s Mansion.” Their most recent collaboration, “Luigi’s Mansion 3,” has sold nearly 8 million copies since launch in October 2019.
  • The vast majority of Nintendo’s internal game development is handled within Japan, and it rarely buys third-party game studios. 
  • Visit Business Insider’s homepage for more stories.

In a rare move for the Japanese gaming powerhouse, Nintendo is buying the game studio behind the smash-hit “Luigi’s Mansion 3” for the Nintendo Switch.

Canadian studio Next Level Games will become a wholly owned subsidiary of Nintendo on March 1 – “pending satisfaction of all relevant terms and conditions” – which Nintendo says will enable, “an anticipated improvement in development speed and quality.” 

Nintendo and Next Level Games have worked together for years, going all the way back to the Nintendo GameCube with “Super Mario Strikers” in 2005. More recently, Next Level created “Luigi’s Mansion: Dark Moon” for the Nintendo 3DS, and its wildly popular followup “Luigi’s Mansion 3” for the Nintendo Switch.

The latter entry has sold nearly 8 million copies since launch on October 31, 2019, according to Nintendo.

Read more: Amid a huge lawsuit against Apple and Google, video-gaming giant Epic Games just signed a nearly $100 million deal to build a massive new headquarters

Of note, Nintendo rarely purchases third-party game studios.

The last major game studio Nintendo purchased was over 10 years ago, when it bought RPG-maker Monolith Soft. Nintendo’s first-party game development is largely handled in Japan, with European and North American arms of the company serving as localization and marketing.

If the acquisition is approved, Next Level Games will become Nintendo’s second game development studio in North America – Retro Studios, based in Texas, was purchased by Nintendo back in 2002. 

Got a tip? Contact Business Insider senior correspondent Ben Gilbert via email (, or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

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