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Tencent Acquires Leyou Technologies for $1.5 Billion

Brace yourself gamers! Tencent is coming to conquer the gaming world without swords and guns, but with tons of money. The Chinese tech giant expanded the list of companies in which it has stakes by acquiring Leyou Technologies, the owner of Warframe’s developers Digital Extremes.

Tencent
Photo courtesy of Digital Extremes

The agreement had been talked about for a few months, but final negotiation was made yesterday. Tencent owned all side companies of Leyou Technologies, including Leyou itself for $1.5 billion as reported. In July, it was reported that Sony was also interested in acquiring the Hong-Kong based company, but the rumor isn’t on the table any longer after the agreement.

Leyou Technologies has several sub-companies. Even though the more recognized one is Warframe’s Digital Extremes, Splash Damage, which worked on Gears multiplayer and Gears Tactics, is in the same boat with Leyou, as is Athlon Games, the publishing partner of Amazon’s Lord of the Rings MMO.

Photo courtesy of Tencent

After the deal, many players asked questions about the future of their beloved games, and Digital Extremes clarified the situation in a blogpost: “We will continue to create great content for Warframe and we will remain creatively independent. Our focus will remain on listening to you, our community, upgrading Warframe based on your feedback, and developing the kind of great stories, gameplay, and incredible new space ninja action you’ve come to expect from us. Tencent is well known for respecting the creative decisions and integrity of its studios, and for giving them the autonomy and independence to experiment, innovate and thrive.”

Photo courtesy of Splash Damage

Splash Damage’s CEO Richard Jolly also expressed his feeling about the deal: “We’ve always been dedicated to creating team-based games that spark friendships and build passionate communities, and we strive to work with partners who believe in that mission. In our many discussions with Tencent, it became clear that they not only believe in that mission but will do everything they can to enable and empower us to realise it. This is going to be a bold new phase for our studio, with an amazing line-up of ambitious games that deliver on what Splash Damage is all about. We couldn’t be more excited.”

Tencent is the titan of gaming. The company has stakes in so many companies including Ubisoft, Supercell, Activision Blizzard, Grinding Gear Games, Riot Games etc., and it continues to amplify its arsenal every single day. We can’t wait to see what’s next for this giant.

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