Tencent edges out Sony in Leyou Technologies buyout negotiations

    
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A week or two ago, we covered the especially-amusing-to-MMO-fans news that Sony was gunning to buy up Leyou, the Chinese holding company that both owns the majority of Warframe’s Digital Extremes and is working on multiple MMOs itself, including a new Lord of the Rings MMO, Transformers Online, and Civilization Online. It’s amusing to us, of course, because Sony already owned an MMO company and sold it off going on six years ago now.

Anyhow, we didn’t follow up on that story, so we’re doing it now as apparently Tencent entered the fray and then took it over entirely. The Chinese megacorp was mentioned in our original piece as one of the owners of iDreamSky, which was also considering a bid, but subsequent releases from Leyou made it clear Tencent was negotiating in its own right through its Hong Kong subsidiary Tencent Mobility and now has exclusive negotiation rights for the next few months while trading for Leyou is on hold.

According to CNBC, “Leyou and its controlling shareholder, Charles Yuk, have entered into an exclusivity agreement with Tencent Mobility Limited, a Tencent subsidiary” with the goal of taking it private. CNBC also quotes an analyst from Ampere Analysis in saying that Warframe “suffered in 2019 due to a slow update cycle and new competition” and that this might be why Leyou is hunting for a buyer. In fact, Warframe reached 50M players in 2019, but those heady press releases about the game breaking its concurrency records with every patch did dry up after 2018.

Source: PC Gamer, CNBC. Thanks, Kalawamazaki!
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Vaeris
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Vaeris

Lol, man this thread reads like the NPC banter comments in Shadowrun RPG rule books…

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Koshelkin

God bless. No PS5 exclusives coming that way, at least.

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Bruno Brito

They probably own my house as well.

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Schmidt.Capela

You might be joking, but the Chinese are itching to gobble up any and everything that is privatized in Brazil, and for the time being they have more free cash to do so than any other country, including the US. And they’ve been doing that for a good while already; as an example, they own over 70% of CPFL, the energy utility that dominates the Brazilian state with the largest economy and power consumption (the Brazilian equivalent to adding California and New York together).

(Which is ironic in that someone in São Paulo with a gripe against the Chinese is sending them money by the very act of using a PC or even mobile to post about it.)

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Bruno Brito

I am joking, but i’m also aware of that, altho i’m not as knowledgeable on the chinese poised to buy the world as you are.

Brazil has been selling it’s own capability as a sovereign nation for years now. The Embraer debacle was the final nail in the coffin for me.

That’s what we as a country get for buying into the US bullshit that made us open ourselves to be privatized all over.

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Does not check email

Whew dodged that bullet.

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Jeremy Barnes

Isn’t Amazon working on a LOTR MMO? How many LOTRO MMOs will there be?

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rk70534

It’s the same MMO.

Leyou got the contract for it and then Amazon joined its development.

Godnaz
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Godnaz

The headline 5-10 years from now ‘ Tencent Buys Sony’s Online Entertainment Sector and It’s Studios, Eyes Electronic Arts’

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Adam Russell

Perhaps Sony could not agree to the restrictions the CCP would have imposed?

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bobfish

Leyou is a Hong Kong company, it doesn’t have any CCP issues (yet).

xpsync
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xpsync

I dunno man this does not sound good for Warframe

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Schmidt.Capela

Ask Path of Exile; it’s also owned by Tencent.

xpsync
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xpsync

Damn what does tencent not own is the easier question to ask.

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Bruno Brito

I would say God, but they probably bought the Holy Spirit from the Catholic Church years ago.

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Danny Smith

I wonder how many threats of losing good boy points with the CCP was involved.