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Tencent is in talks to acquire Digital Extremes owner Leyou Technologies

(Image credit: Digital Extremes)
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Updated: Following the notice that it had temporarily ceased trading on the Hong Kong Limited Stock Exchange, Leyou Technologies has confirmed (opens in new tab) that it's entered into an exclusive agreement with Tencent over a possible acquisition and privatisation. 

Original story: Leyou Technologies, the holding company that owns Warframe developer Digital Extremes and Gears Tactics developer Splash Damage, has stopped trading shares on the Hong Kong Limited stock exchange ahead of an announcement regarding a buyout. 

The notice (opens in new tab) (cheers, ResetEra (opens in new tab)) does not mention specifics, but Leyou has been looking to sell since last year, with iDreamsky and Sony being among the companies interested in adding it to their roster. 

According to a Bloomberg (opens in new tab) report, Tencent has also joined the gang and has entered an agreement with the holding company, though this does not guarantee that the deal will go through. 

With trading halted, however, and the "pending release of an announcement," it does seem likely that news of a buyout is imminent. It was halted this morning, but there's no word on when the announcement will actually appear. 

Tencent's reach (opens in new tab) is becoming increasing vast, with big stakes in the likes of Epic, Supercell, Fatshark, Funcom, Grinding Gear Games, Paradox Interactive and Riot, which it owns completely.  It's also made investments in PUBG's Bluehole, Ubisoft, Activison and Frontier.

Fraser Brown
Fraser Brown

Fraser is the UK online editor and has actually met The Internet in person. With over a decade of experience, he's been around the block a few times, serving as a freelancer, news editor and prolific reviewer. Strategy games have been a 30-year-long obsession, from tiny RTSs to sprawling political sims, and he never turns down the chance to rave about Total War or Crusader Kings. He's also been known to set up shop in the latest MMO and likes to wind down with an endlessly deep, systemic RPG. These days, when he's not editing, he can usually be found writing features that are 1,000 words too long or talking about his dog.