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Trading Halted - Something huge is about to happen to Leyou Tech (Warframe, The Lord of the Rings, Transformers, Civilization Online)

rocket

rocket

Member
Oct 27, 2017
1,306
So looks like they are very very close be officially announced I am sure...

Bloomberg said:
iDreamSky Technology Holdings Ltd. is in exclusive talks to buy rival gaming firm Leyou Technologies Holdings Ltd. for about $1.4 billion, according to people familiar with the matter.

iDreamSky, which counts Tencent Holdings Ltd. among its shareholders, is seeking co-investors to help finance the transaction, the people said, asking not to be identified because the deliberations are private. Potential partners could include private equity firms as well as other gaming companies, the people said. The Shenzhen-based firm is working with Credit Suisse Group AG on the deal, they said.
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Bloomberg said:
Last week, Leyou updated the progress in a filing that its controlling shareholder Charles Yuk had entered into a memorandum of understanding to sell about 69.2% stake to an unidentified potential buyer. The company granted a 21-day exclusivity period to the potential purchaser to conduct due diligence and try to reach a formal agreement.
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Bloomberg said:
Michael Chen, its co-founder and chief executive officer, is iDreamSky's largest shareholder with a 25.92% stake, according to data compiled by Bloomberg. Tencent Mobility, a unit of the Chinese technology giant Tencent, owns about 18.6% as the second-largest holder.
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source:
Bloomberg Article: https://www.bloomberg.com/news/arti...eamsky-said-in-talks-to-buy-gaming-firm-leyou
Leyou Trading Halt Announcement: http://northeurope.blob.euroland.co...ments/1183258/HKEX-EPS_20191209_9093162-0.PDF
iDreamSky Trading Halt Announcement: http://ldadm.idreamsky.com/uploads/soft/191209/1_0931234141.pdf

__________________________________________________
UPDATE:

Both Leyou Tech & iDreamSky had requested trading to be resumed on the 10th.

source:
Leyou: http://northeurope.blob.euroland.co...ments/1183380/HKEX-EPS_20191209_9093776-0.PDF
iDreamSky: http://ldadm.idreamsky.com/uploads/soft/191209/60_1828539751.pdf
 
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Cirrus

Cirrus

Member
Oct 25, 2017
1,120
Whatever happens, I hope they don't interfere with the development and monetisation of Warframe.
 

Deleted member 10737

User requested account closure
Banned
Oct 27, 2017
49,774
they also own splash damage, who are currently working on halo master chief collection for PC and gears tactics.
 

Deleted member 48991

User requested account closure
Banned
Oct 24, 2018
753
Both Leyou and iDreamSky halting trading on the same day after the rumored acquisition discussions seems to confirm the reporting. It seems like a good match, as Leyou makes PC/Console games and has been trying to get into mobile (evidenced by their failed deal with Meitu earlier this year), while iDreamSky happens to focus mostly on mobile. Now the question remains who is backing the takeover, because iDreamSky alone does not have the cash for an acquisition like this.
 
elenarie

elenarie

Game Developer
Verified
Jun 10, 2018
9,815
Triscuitable said:
Haven't you heard? The free market's good for everyone!
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Many companies are formed on the bet of being bought out by bigger ones in the future.

And unlike the stupid old western entertainment companies, Tencent knows that interactive media, or well gaming of any form, is the future of entertainment, so they are preparing for their lovely and glorious Tencent owned future od humanity.

/TinfoilHat
 
Weltall Zero

Weltall Zero

Game Developer
Banned
Oct 26, 2017
19,343
Madrid
Cirrus said:
Whatever happens, I hope they don't interfere with the development and monetisation of Warframe.
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Expect its development and monetisation to be fully interfered with. Whether that's a good or bad thing, however, is another matter. Worst case scenario, it goes (back to) pay to win, player base dwindles, and the plug is pulled. Best case scenario, they leave the game alone but we get some actual quality control.

(I'm not an optimist by nature so I don't count on the latter).
 

Deleted member 48991

User requested account closure
Banned
Oct 24, 2018
753
Weltall Zero said:
Expect its development and monetisation to be fully interfered with. Whether that's a good or bad thing, however, is another matter. Worst case scenario, it goes (back to) pay to win, player base dwindles, and the plug is pulled. Best case scenario, they leave the game alone but we get some actual quality control.

(I'm not an optimist by nature so I don't count on the latter).
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I don't really think they would want to tinker with the Warframe formula, as it's still making a ton of money and they know that more aggressive monetization might cause backlash. Besides, considering iDreamSky is mostly doing mobile games I don't think that they would want to make too many changes to the PC/Console "division". Becoming part of a bigger organization might actually be healthy because right now Leyou is too dependent on Warframe.

Anyway as an update to the thread, it seems like both companies are still negotiating and the only reason why they halted trading was because the news of the negotiations was leaked. Tomorrow both companies will start trading again, still as separate companies. They did confirm though that iDreamSky is indeed the company that is trying to acquire Leyou.
 
Weltall Zero

Weltall Zero

Game Developer
Banned
Oct 26, 2017
19,343
Madrid
sNtd said:
I don't really think they would want to tinker with the Warframe formula, as it's still making a ton of money and they know that more aggressive monetization might cause backlash. Besides, considering iDreamSky is mostly doing mobile games I don't think that they would want to make too many changes to the PC/Console "division". Becoming part of a bigger organization might actually be healthy because right now Leyou is too dependent on Warframe.

Anyway as an update to the thread, it seems like both companies are still negotiating and the only reason why they halted trading was because the news of the negotiations was leaked. Tomorrow both companies will start trading again, still as separate companies. They did confirm though that iDreamSky is indeed the company that is trying to acquire Leyou.
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I hope you are right, but it would not be the first time a company sought to cash the current player base of a game dry without a care for its long-term viability.
 

Joco

Member
Oct 29, 2017
1,446
Fuck off Tencent. Do they have to have their fingers in everything gaming related?
 
OmegaDL50

OmegaDL50

One Winged Slayer
Member
Oct 25, 2017
9,689
Philadelphia, PA
I hope this doesn't negatively effect SNK.

They finally managed to get out of the hole of pachinko machines and mobile offerings to point of full-on console development again.

Say what you will about KOF'14's visuals, it's still the best playing KOF game since KOF'98 and 2002. Hell it borrows so much from KOF'98 and for that reason alone gives the game strong mechanics. Also the new Samurai Shodown is the best direction the series has been since 5 Special. The chance of a rumored new Fatal Fury and KOF15 must not be lost in a company trading scramble.
 

Deleted member 48991

User requested account closure
Banned
Oct 24, 2018
753
OmegaDL50 said:
I hope this doesn't negatively effect SNK.

They finally managed to get out of the hole of pachinko machines and mobile offerings to point of full-on console development again.

Say what you will about KOF'14's visuals, it's still the best playing KOF game since KOF'98 and 2002. Hell it borrows so much from KOF'98 and for that reason alone gives the game strong mechanics. Also the new Samurai Shodown is the best direction the series has been since 5 Special. The chance of a rumored new Fatal Fury and KOF15 must not be lost in a company trading scramble.
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I don't think Leyou owns SNK anymore. SNK are listed on the Korean KOSDAQ stock market since earlier this year and their largest shareholder is shown as "ZUIKAKU CO., LTD", their second largest shareholder is Perfect World (http://media.kisline.com/compinfo/mainCompinfo.nice?paper_stock=950180&nav=2). It seems the owner of Zuikaku is also a former executive from Perfect World.
 
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