Growing in influence drastically over the last few years, Chinese tech giant Tencent has become an increasingly present force in the world of gaming in spite of several controversies regarding its approach to private data usage. It seems the company is looking to continue that growth by acquiring a significant parent company in the gaming space, with Hong Kong based video game holding company Leyou Technologies slated to be purchased by the notorious conglomerate.
The news comes via a press release from Leyou and Tencent subsidiary Image Frame Investment, with the deal - which will cost $1.5 billion - being approved by shareholders. The acquisition has allegedly been in the works since July this year, with Tencent swooping in to conduct negotiations with Leyou after its talks with Sony fell through.
With the purchase, Tencent will have access to the suite of video game studios Leyou currently owns, including Digital Extremes, Splash Damage, Radiance Games, and Kingmaker. Digital Extremes is best known for its work on Warframe: the popular free-to-play multiplayer action game first published in 2013. Seeing as the game is one of the biggest titles on the free-to-play market, it's a big acquisition for Tencent and one that will expand the library of premiere experiences associated with the company.
Splash Damage is also a notable name in the video game scene, with the British developer working on several big projects in recent years. The team collaborated with The Coalition to develop Gears Tactics, as well as 343 Studios in helping to port Halo: The Master Chief Collection to the PC. The team has also collaborated on the multiplayer components of some huge games, including Batman Arkham Origins and Doom 3.
As for Leyou Technologies itself, the company has had a strange history. Initially opening its doors as an agriculture and poultry company, the team shifted its focus to gaming back in 2014, purchasing a major stake in Digital Extremes. Since then, Leyou has attempted to build its portfolio and acquire a series of notable developers from all corners of the industry. It'll be interesting to see where the publisher goes now Tencent has brought it into the fold.
Despite becoming an increasingly present name in the video game industry, Tencent hasn't gone without its fair share of controversy, most notably alarming the government due to its concerning handling of private data. Earlier this year, it even wound up butting heads with the former-President of the United States himself, as Donald Trump pushed tirelessly to have notable Tencent staple WeChat banned in the country.
Source: Leyou / Image Frame Investment