Sony Corporation weighing bid for Leyou Technologies acquisition

Joanna Estrada
July 4, 2020

Leyou Technologies is the parent company of Digital Extremes, amongst other studios and soon, Sony may make a big to acquire all of it.

Since, Leyou has received a takeover offer from Zhejiang Century Huatong Group. PlayStation fans might not have a lot to look forward to in terms of exclusives if Leyou is owned by Sony because this investment could be exclusively for increasing quarterly revenue and industry influence.

Leyou was listed in Hong Kong in 2011 and counts the popular free shooting games Dirty Bomb and Warframe among its titles. It also owns 100% of the shares in Athlon Games, the publisher that has published Samurai Shodown in Europe and North America.

With this acquisition Sony would thus come into possession as mentioned of a package that includes the studios Digital Extremes (Warframe), Splash Damage (Gears Tactics) and Certain Affinity, team working with 343 Industries on various Halo-themed projects. Splash Damage is also working on a Stadia-exclusive game. This year, their stock has risen around 20%, giving the Leyou a market cap of about $1.1 billion.

Chinese firm IDreamSky was in talks to buy Leyou in December 2019.

Sony is hoping that it can edge out other bidders with greater certainty of financing. Leyou's controlling shareholder is said to be chomping at the bit to settle on a buyer and sign an agreement as early as this month. Unless this bid and eventual purchase were to go through, it is now uncertain whether these studios will be merged into Sony Worldwide Studios or remain independent. "Further bidders may yet emerge", Nicholas added. Leyou and Sony officials, meanwhile, have declined to comment.

Sony has been planning to strengthen its content arsenal as the tech giant's chief executive officer Kenichiro Yoshida believes that would, in turn, reinforce the value of its branded consumer electronics hardware. That includes PlayStation 5, the latest console for video games which the company plans to launch at the end of this year. Undergraduate studying English. Writes stories on: PlayStation news and analysis, general video game industry affairs, the film industry affairs, and the streaming wars.

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