Tencent has divested Battalion developer Bulkhead to a newly established consortium supported by the owner of Team 17

Tencent, the major player in the tech and entertainment sectors from China, has divested UK-based developer Bulkhead to a newly established group. This consortium comprises Super Media Group (SMG), Team17's parent company Everplay Group PLC, and Hiro Capital. Splash Damage acquired Bulkhead in 2022, but it was later transferred to private equity ownership.

Bulkhead is recognized for its military-themed FPS, Battalion 1944, and is currently developing a new game titled Wardogs. This title is expected to enter Early Access for PC in 2026, with a broader platform release planned for the subsequent year. Team17 will handle publishing duties.

SMG was officially incorporated in October, with its leadership including Bulkhead's CEO Joe Brammer, CTO Kevin Chandler, and CFO Mark Pinney. Everplay, previously known as Team17 Group, has revealed an acquisition of a 20% interest in SMG, valued at £2 million. While Hiro Capital holds a minority interest in the consortium, the exact percentage is undisclosed, and the firm refrained from commenting.

Super Media Group is also considering the development of future games within Team17's Hell Let Loose series.

Brammer expressed enthusiasm, saying, “We’re really excited about this partnership and our future collaboration on the Hell Let Loose franchise, as well as Wardogs entering early access next year. Most importantly, we’re proud to be keeping all of our team members on board as we move forward.”

Frank Sagnier, acting executive chair of Everplay, remarked, “This partnership reinforces Everplay’s existing strong position within the FPS genre. Collaborating with the exceptional Bulkhead team secures incredible new game content, while our equity stake in SMG speaks to our commitment to a long-term relationship with the studio, the FPS genre and the Hell Let Loose franchise. The transaction is fully aligned with our focus on growing first-party IP revenues and disciplined capital deployment, while providing a highly attractive return on investment.”

In 2022, Bulkhead was acquired by the UK firm Splash Damage for an undisclosed sum. At that time, the studios were engaged in developing Transformers: Reactivate, but due to cancellation, some positions were at risk of redundancy. Bulkhead went through layoffs in July.

Splash Damage parted ways with Tencent in September when acquired by unknown private equity investors. Subsequently, the studio entered consultations anticipating further layoffs.