Tencent has bought Leyou, a Hong Kong company that most of you probably have not heard of before but that did not come out of nowhere, precisely.
The issue is that Digital Extremes, the Canadian study responsible for Warframe, has been owned by Leyou for years, as well as Splash Damage, the study that has developed Gears Tactics with The Coalition. His are also games like Wolfenstein: Enemy Territory for Activision or Brink for Bethesda.
The most curious of Leyou is that before calling itself that and starting to buy companies related to video games, its name was Sumpo Food Holdings and its activity consisted of the distribution of chicken meat. In fact, when it bought a majority stake in Digital Extremes in 2014, its two main activities were Agriculture and Poultry on the one hand and Videogames on the other.
In 2015 he decided to change his name to Leyou Technologies Holdings Limited and in 2016 it bought the rest of Digital Extremes. That same year it also put up for sale its part of the business related to Agriculture and Poultry. You never know where the shots are going to go, it seems.
Right now Leyou has five subsidiary companies related to video games (Digital Extreme, Splash Damage, Radiance Games, Athlon Games and Kingmaker) and has been acquired by Tencent for a value of approximately $ 1.3 billion.
Thus, Tencent he continues to take out the checkbook and keep whatever they leave him in terms of video games. Serve as a reminder that Tencent is the company that owns Riot Games, 40% of Epic Games, 5% from Ubisoft, from another 5% of Paradox Games and that has invested in studios like Platinum Games. And this is just a small sampleIf we look at each and every tentacle that it has placed in the video game industry, the list is long.
For his part, both Digital Extremes as Splash Damage have published their own statements in which, basically, they wanted to make it clear that Tencent’s acquisition of Leyou will not affect your creative independence and they will continue working as before. The main difference is that they will have more financial support to carry out larger and more ambitious projects.