Tencent bought the owners of Warframe for $1.49 billion — UPDATED

The deal between Chinese gaming giant Tencent and Hong Kong-based Leyou Technologies has officially taken place. The purchase amount is HK$11.6 million ($1.498 billion). At the same time, the value of the Warframe owners’ shares is slightly lower – HK$10.24 million ($1.322 billion).

update

A mistake was made. At the moment, the majority shareholders of Leyou Technologies have voted for the sale of the company. But all the approvals have not yet been received and, of course, there are still technical issues. In theory, the deal may not take place yet.

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InvestGame announced the completion of the negotiations. According to the portal, on August 28, Tencent conducted an acquisition through its subsidiary Image Frame Investment.

Terms of the transaction:

• Tencent pays for the purchase in cash and without attracting third-party financing;
• Leyou Technologies is fully placed at the disposal of a Chinese company and completes the listing of shares;

Negotiations began on July 10 and immediately received the status of exclusive. Then Leyou Technologies and Tencent Mobile (the Hong Kong branch of Tencent) planned to agree on the terms of the deal in three months. At that time, it was unknown how much Tencent was going to pay for the purchase of the Hong Kong developer and publisher, but the company itself was estimated at approximately $ 1.2 billion.

Leyou Technologies is a Hong Kong holding company whose main specialization is free-play games for consoles and PCs. Among the assets of the company are Digital Extremes, Splash Damage, Athlon Games, 20% of the Texas Certain Affinity, as well as the rights to develop Civilization Online and the Transformers games. The main revenue of Leyou is brought by the loot shooter Warframe. In 2019 alone, it accounted for a quarter of the company’s total revenue – $57.5 million.

Also on the topic:

• Tencent has started negotiations on the purchase of Leyou, whose assets include Warframe and Gear TacticsTencent has acquired a minority stake in Voodoo.
• The French were estimated at $1.4 billionTencent’s quarterly revenue was $16.2 billion, and online gaming revenue increased by 40%
• Is there any news?