Veronika Mikhailova

The Chinese company that owns Warframe wanted to acquire its competitor

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A new buyer is eyeing Leyou Technologies. China’s Zhejiang Century Huatong Group is fighting for an asset with iDreamSky.

Warframe
Abacus News writes about the new candidate for the purchase of Leyou.

Zhejiang Century Huatong Group is a direct competitor of Leyou Technologies. Nevertheless, two Chinese holdings signed a memorandum of understanding. Moreover, they are negotiating a merger. Century Huatong is ready to initiate a legal examination, the sources of the publication are sure.

According to them, the group from Shenzhen is ready to pay more for a controlling stake in Leyou than other buyers. Among them:

  • Chinese iDreamSky. She has been looking for co-investors to buy Leyou (including among other potential buyers) since the end of last year. Initially, the company offered $1.4 billion for the shares of the holding;
  • The investment company CVC Capital Partners. iDreamSky agreed on the purchase, including with her. In the spring, negotiations were suspended due to COVID-19. But, according to Abacus, CVC, together with iDreamSky, offered Leyou owners $1.23 billion;
  • Bain Capital. This firm was mentioned among possible buyers in December;
  • and several other unnamed companies have become interested in the asset in recent weeks.

The holders of the controlling stake in Leyou Technologies have not yet decided who to sell the holding to. According to the media, they can still refuse Zhejiang Century Huatong Group. However, trading in Leyou shares on the stock exchange was frozen last Monday, and it will not be resumed until the announcement of the takeover.

Zhejiang Century Huatong Group has been selling auto parts since 2005. She began to develop as a game publisher only in 2016, having bought a large mobile publisher CMGE for $ 1 billion.

Leyou Technologies itself didn’t start with games either. Until 2015, she was engaged in poultry farming. Then I invested in the purchase of Splash Damage and Digital Extremes. The latter is the developer of Warframe, gaining an audience, but losing money.

Over the past year, the Leyou gaming segment has generally sunk, but is still the most profitable. You can read more about this in the holding’s report.

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