It looks like Sony is keen on dipping its toes into a bidding war for Hong Kong gaming company, Leyou Technologies. In a report by Bloomberg, the Japanese tech giant is consulting a financial adviser on how to approach the offer. Leyou also received a non-biding takeover offer from a Shenzhen-based rival gaming firm, Zhejiang Century Huatong Group Co. in May this year, together with other buyout bids from other companies like iDreamSky Technology Holdings, Ltd.
Per the report, Leyou aims to finish the buyout talks hopefully by this month. However, details are still scant and nothing is made official as of this posting.
Leyou’s controlling stakeholder, Charles Yuk, has been in talks with iDreamSky for the longest time for a majority stake at the company. Had the pandemic not struck, iDreamSky could have pushed through with CVC Capital Partners for a joint buyout of Leyou worth US$1.23 billion. iDreamSky also has Tencent Holdings as one of its investors.
Leyou Technologies is the parent company of a few game developer teams, in particular Digital Extremes, the developer team behind Warframe; Splash Damage, the team responsible for Gears Tactics; and Athlon Games, responsible for The Lord of the Rings MMORPG together with Amazon. They also partly own Certain Affinity, who worked on Halo: The Master Chief Collection; and LCG Software, who recently acquired the Telltale Games franchise.