Tencent Finalizing Plans To Purchase Leyou Technologies For $1.3 Billion
After having several months with an exclusive negotiating window, Tencent is finally wrapping up its acquisition of Leyou Technologies. PCGames Insider is reporting that the deal will be worth $1.3 billion, or about $10.25 billion in Hong Kong dollars, with Leyou to be taken over by Tencent subsidiary Image Frame Investment. The deal was agreed to in an extraordinary general meeting on Dec. 11 and will be finalized on Dec. 23.
As a result of the move, Leyou will be pulled from the Hong Kong Stock Exchange and made private. Prior to Tencent's entering into negotiations, several other media companies were named as possible suitors for Leyou, including Sony and mobile developer iDreamSky.
As for what this means for Warframe developer Digital Extremes, as well as Athlon Games -- both of which are owned by Leyou -- my answer will be, as usual, virtually nil. As much as there's strong anti-Tencent feeling out there, you can't say that it's had a particularly negative effect on the other companies it's acquired, notably Grinding Gear Games (80% ownership) or Riot Games (100% ownership). This list isn't quite up to date, but it gives you an idea of all the companies that Tencent has a piece of, and it would be hard to argue that they're all in worse shape because of Tencent's influence. And at least Tencent is actually honest about who it acquires and when it does so, which is more than can be said for some companies.
About the Author
Jason Winter is a veteran gaming journalist, he brings a wide range of experience to MMOBomb, including two years with Beckett Media where he served as the editor of the leading gaming magazine Massive Online Gamer. He has also written professionally for several gaming websites.
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