The Chinese publisher iDreamSky has conceived a major deal. The partner of the Russian MY.GAMES agrees to purchase the group of companies Leyou Technologies Holdings Ltd. for $1.4 billion.
Warframe
According to Bloomberg sources, iDreamSky is now looking for co-investors for the acquisition.
They can be private investment companies (for example, Credit Suisse Group), as well as gaming conglomerates.
Leyou, in turn, is in search of a buyer and is negotiating with potential investors: Bain Capital, CVC Capital Partners and others.
What the deal will give iDreamSky
- iDreamSky has exclusive rights to publish hits such as Temple Run, Monument Valley and Subway Surfers in China. However, since last year, the publisher has been losing in the value of shares: they have fallen by 30% in annual terms.
- Leyou Technologies, on the contrary, has everything in order with securities. This year, its shares jumped by 16%, and the group’s valuation reached $996 million. Thus, if iDreamSky buys the holding, it will be able to improve its own affairs.
- Also, according to Bloomberg, the purchase of Leyou will give iDreamSky access to the free-duplex PC segment. The publisher itself releases only mobile games so far.
- In addition, the new asset, in case of acquisition, will be associated with the Chinese giant Tencent. He owns 18.6% of iDreamSky through a branch of Tencent Mobility, being the second largest shareholder of the publisher.
About Leyou Technologies
In the past, Leyou Technologies was exclusively engaged in poultry farming. But in 2015, I invested in the field of video games. She bought the British Splash Damage, Digital Extremes studio (Warframe) and part of Certain Affinity (Halo 4, Call of Duty: Black Ops). And also opened the publishing division of Athlon Games in the USA.
By the end of last year, the total value of Leyou’s assets reached $310 million, and the group’s total revenue was $230 million.
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