Sony Corporation has reportedly been considering to acquire Hong Kong-based Leyou Technologies Holdings to expand its PlayStation 5 portfolio.
According to a report from Bloomberg earlier today, Sony has been working with a financial advisor to place a bid for Leyou which could also pave the way for a bidding war. The PlayStation parent company is not alone in acquiring the Chinese gaming firm which has a market value of $1.1 billion at the time of writing.
There have been several other interested firms, including Zhejiang Century which was confirmed to have offered a non-binding takeover to Leyou back in May. Another Chinese firm iDreamSky, backed by Tencent Holdings, has also tabled a $1.23 billion bid on the side. COVID-19 brought those discussions to a momentary halt. It remains to be seen how Sony will go about the acquisition.
Leyou Technologies Holdings has several subsidiaries under its wings. The most notable of them being Digital Extremes, the studio behind Warframe; and Splash Damage, the studio behind Gears Tactics. There is also Athlon Games, currently co-developing a free-to-play Lord of the Rings MMO with Amazon. Leyou furthermore has a 20 percent ownership stake in Certain Affinity, a studio which has contributed to multiple games in the Call of Duty and Halo franchises.
Should Sony succeed in its new acquisition, Leyou Technologies Holdings and its subsidiaries will come under the recently announced PlayStation Studios initiative for PlayStation 5 games. The branding will only roll out after PlayStation 5 releases worldwide, which is currently set for the holiday season in fall 2020.