The Chinese multinational company, Tencent, has increased its strength in the gaming industry by acquiring Leyou Technologies. It is rumored that Tencent had to fight Sony to obtain Leyou’s signature. Tencent completed the deal for a massive total of $1.5 billion today.
A Hong Kong-based company, Leyou, initially started by focusing on the agriculture and poultry sector. Later in 2014, they expanded their horizons by acquiring Digital Extremes, Warframe’s developing company.
From here, there was no stopping Leyou. The company emphasized gaming, and in 2016, they bought Splash Damage, best known for their work on Gears multiplayer and Gears Tactics.
Moreover, Leyou also has a 20% equity in the game developing company, Certain Affinity. Halo Infinite and CoD: Modern Warfare are some games that Certain Affinity flaunts in their portfolio.
Athlon Games also works under Leyou as a publishing partner and is currently developing Lord of the Rings MMO with Amazon.
Now with Tencent’s dominance in the market cannot be denied following Leyou’s acquisition. Besides buying Leyou, Tencent also has control over Riot Games and Funcom. Furthermore, they have about 50% equity on the shares of Epic Games.
Tencent also owns the shares of giants like Activision Blizzard, Ubisoft, and Paradox Interactive.
Talking about the acquisition, Splash Damage’s CEO, Richard Jolly, said,
“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,”
Richard Jolly
He continued,
“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.”
Richard Jolly
If you are worried that this business transaction between Tencent and Splash can affect Warframe anyhow, then relax! Tencent has claimed that the game will remain unchanged.
About Tencent:
Established in 1998, Tencent is a Chinese MNC that is one of the world’s most monetarily valuable companies.
They offer various services that include social network sites, web portals, e-commerce, mobile games, internet services, payment systems, etc.
Tencent owns a majority of the popular video games industry. Therefore from giants like Clash of Clan to Assassin’s Creed, Tencent controls the making of some of the finest games known to the world.
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