Chinese behemoth Tencent has finally been given the green light to acquire Hong Kong-based Leyou Technologies for a reported $1.5 billion.
Leyou was said to be finding a buyer as far back as last year. Sony Interactive Entertainment was particularly rumored to be at the front of the negotiation table. The focus though then shifted to Tencent as Leyou officially confirmed in the summers to be holding talks with the Chinese technology conglomerate.
Following four to five months of negotiations, Leyou shareholders voted in vast majority last week (via GamesIndustry) to be in favor of an acquisition by Image Frame Investment, a subsidiary of Tencent. Leyou will now remove itself from the Hong Kong Stock Exchange by next week and by doing so, go private.
Leyou serves as a parent company to a number of prominent development studios. It owns a controlling stake in Digital Extremes for starters, the developer of Warframe. It also owns Splash Damage, the developer of Dirty Bomb and Gears Tactics. Splash Damage is further working with Google Stadia on an unannounced project and Amazon Game Studios on a free-to-play Lord of the Rings massively multiplayer online game for at least a couple of years now.
Elsewhere, Tencent recently acquired “a major stake” in 10 Chambers Collective, the developer of GTFO. The deal was termed as a major push by Tencent into the western games market. 10 Chambers Collective was founded in 2015 by former staffers of Starbreeze Studios, the developer behind Payday 2 and The Chronicles of Riddick: Assault on Dark Athena. The GTFO developer was in need of “more muscle” to achieve its “ambitious long-term vision” and where Tencent entered with an attractive proposition.