Updated: Following the notice that it had temporarily ceased trading on the Hong Kong Limited Stock Exchange, Leyou Technologies has confirmed that it’s entered into an exclusive agreement with Tencent over a possible acquisition and privatisation.
Original story: Leyou Technologies, the holding company that owns Warframe developer Digital Extremes and Gears Tactics developer Splash Damage, has stopped trading shares on the Hong Kong Limited stock exchange ahead of an announcement regarding a buyout.
The notice (cheers, ResetEra) does not mention specifics, but Leyou has been looking to sell since last year, with iDreamsky and Sony being among the companies interested in adding it to their roster.
According to a Bloomberg report, Tencent has also joined the gang and has entered an agreement with the holding company, though this does not guarantee that the deal will go through.
With trading halted, however, and the “pending release of an announcement,” it does seem likely that news of a buyout is imminent. It was halted this morning, but there’s no word on when the announcement will actually appear.
Tencent’s reach is becoming increasing vast, with big stakes in the likes of Epic, Supercell, Fatshark, Funcom, Grinding Gear Games, Paradox Interactive and Riot, which it owns completely. It’s also made investments in PUBG’s Bluehole, Ubisoft, Activison and Frontier.