Tencent, the Chinese conglomerate that has its hands in many different industries, may soon be acquiring another company. Its latest buyout target is Leyou, the parent company behind video game studios such as Warframe’s Digital Extremes and Gears Tactics’ Splash Damage.
A few days ago on July 10, Leyou released a document announcing a halt in stock trading “pending the release of an announcement pursuant to the Hong Kong Code on Takeovers and Mergers which constitutes inside information of the Company.” At the time, the company was getting purchase offers from Zhejiang Century Huatong Group, Tencent subsidiary iDreamSky, and Sony, which looked poised to be the one to buy Leyou .
However, according to GameSpot, a new statement from the Leyou board confirms that it’s entering into an agreement with Tencent, which already owns majority shares in studios such as League of Legends’ Riot Games. The announcement by Leyou’s board says that “on 10 July 2020 (before trading hours), Mr. Yuk and the Company entered into an exclusivity agreement (the ‘Privatization Exclusivity Agreement’) with Tencent Mobility Limited (the ‘Potential Acquiror’), a wholly-owned subsidiary of Tencent Holdings Limited.” The agreement doesn’t mean the buyout is certain, but if Leyou does sell in the next three months, the buyer is all but guaranteed to be Tencent.
Tencent has plenty of other projects under its belt. The conglomerate has investments in many companies, including Ubisoft, Riot, Activision, and many more. It’s also launched a California-based studio of its own called LightSpeed LA. As for game development, Tencent is making an open-world first-person-shooter codenamed SYN and is developing Pokemon Unite, a MOBA game expected to release on the Nintendo Switch and mobile.
Source: GameSpot
