Sony Considers a Bid for Hong Kong-Listed Gaming Firm Leyou

Sony Considers a Bid for Hong Kong-Listed Gaming Firm Leyou

Sony Corp. is weighing a bid for Leyou Technologies Holdings Ltd., people familiar with the matter said, paving the way for an intensified bidding war for the Hong Kong-listed gaming firm.

The Japanese tech giant is working with a financial adviser on the potential offer for Leyou, said the people, asking not to be identified because the matter is private. In May, the Chinese gaming firm confirmed it had received a non-binding takeover offer from Shenzhen-listed rival Zhejiang Century Huatong Group Co., after months of buyout talks with other bidders including iDreamSky Technology Holdings Ltd.

Shares of Leyou extended their gains to as much as 9.8% after the Bloomberg News report. The stock has risen about 20% this year, giving the company a market value of about $1.1 billion.

Sony Considers a Bid for Hong Kong-Listed Gaming Firm Leyou - Game Podcast - Games Podcasts - Video Game Podcast -
Sony Considers a Bid for Hong Kong-Listed Gaming Firm Leyou – Game Podcast – Games Podcasts – Video Game Podcast –

Leyou’s controlling shareholder Charles Yuk had been in talks with iDreamSky for a majority stake sale since late last year. iDreamSky, which counts Tencent Holdings Ltd. among its investors, had been in discussions with CVC Capital Partners for a joint offer valuing Leyou at about $1.23 billion but the Covid-19 pandemic brought their talks to a stalemate, Bloomberg News reported in April.

Sony is hoping that it can edge out other bidders with greater certainty of financing, the people said. Leyou’s Yuk aims to choose a buyer and sign an agreement as soon as this month, the people said.

Talks are still ongoing and no final decision has been made, the people said. Other bidders could still emerge, they said. Representatives for Leyou and Sony declined to comment.

Leyou was listed in Hong Kong in 2011 and counts among its titles the free shooting games Warframe and Dirty Bomb. It’s also working with Amazon.com Inc. to co-produce a video game based on the popular fantasy series “The Lord of the Rings,” according to its website.

Sony has recently been aiming to beef up its content arsenal as the tech giant’s chief executive officer Kenichiro Yoshida believes that would in turn strengthen the value of its branded consumer electronics hardware. That includes PlayStation 5, the new video game console that the company plans to launch at the end of this year.

Leyou’s Warframe is already available on PlayStation 4 and the company has said in its latest earnings report that it plans to expand the game to more platforms including the next-generation consoles.

About PodcastGameConsultant.com;

Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry.

With over 20+ years of experience, well known publishers, AAA+ game developers, serial gaming entrepreneurs and management teams of gaming corporations consult him on matters that behold financial, technical, operational, strategic and commercial.

Video Game Podcast Interviews hosted by Reinout te Brake - Game Podcast - Games Podcasts - Video Game Podcast -
Video Game Podcast Interviews hosted by Reinout te Brake – Game Podcast – Games Podcasts – Video Game Podcast –

I am observing and overseeing several boards of gaming companies. My trademark is to listen, strategize and give feedback to the stakeholders involved. I also represent management/founders towards shareholders and vice versa.

Every Sunday I am hosting a games podcast. New episode are every week with gaming start up’s, investors and game experts. The reason I started this game podast was to share my experience and network.

It is fun, since there are many games podcasts already, but no-one is focusing on the gaming industry. So tune into my video game podcast and do share with others!

Reinout
Reinout is a Game Dev Investor and Strategy Advisor. Host of this Video Games Podcast. If you want to know more about gaming news, trends, analysis and insights in gaming, then you did find the right games podcast; https://www.PodcastGameConsultant.com.