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News Rumor Sony Seeking $1.23 Billion Acquisition of FIVE Developers (Leyou Technologies)

Bo_Hazem

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Rumors of Sony seeking a massive acquisition of 5 studios, under their mother company Leyou Technologies.

(Timestamped)




More into it:

Sony is apparently making planning on buying Leyou Technologies, a major stakeholder in developer Digital Extremes that made Warframe. The company wants to acquire the Chinese game holding firm that has a number of high profile IPs and developers.

According to Bloomberg, the massive acquisition will have Sony acquire multiple popular free to play titles which include, the massively successful Warframe and upcoming Lord of the Rings MMO. Leyou Technologies is valued at 1 Billion US Dollars, but that isn’t something that can deter industry giant Sony. The Japanese company earned over 18 Billion US Dollars through PlayStation gaming in 2019 alone.

Leyou has various games under the Free to Play category that will bump Sonys revenue even further if acquired. Additionally, this buyout would also give the company a stronger foothold on the Chinese gaming market and the global market as a whole. Popular titles under Leyou Technologies include:

  • Warframe developers Digital Extremes
  • Splash Damage (the one’s behind the popular PC port of the Halo: Master Chief Collection)
  • Athlon Games, the publisher behind Samurai Shodown for SNK
  • Radiance Games and more

More of the article:


Seems like a multi-player-focused investment.
 

Bo_Hazem

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They should ask the CC... I mean they should ask Tencent for the money

Nah, they prefer to pay in cold cash up front like the $229 million for Insomniac.

Oh nony, they want some of that sweet MP candy, stick to what you are good at ya bunch of nerds!

Seems like Wareframe is doing good as a model for them, I think they wanna invest more into multiplayers, maybe smartphone gaming as well.
 

Bo_Hazem

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I don't know why they would buy this company out.
Should have bought Ready at Dawn, and they should also buy Bluepoint and House before even thinking about this other mob.

I think all of those are not experienced in multiplayer gaming, if this is true it seems more like console/smartphone gaming, or even have them multiplat as well.

Thats good, that game seems like it has amazing value with all they've added changed.

Yup, might help them with their multiplayer gaming across their PS Studios as well.

Do they have any plan to bring Warframe to PS5?

I can't see them not bringing it to PS5, to be honest.
 

Xplainin

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I think all of those are not experienced in multiplayer gaming, if this is true it seems more like console/smartphone gaming, or even have them multiplat as well.



Yup, might help them with their multiplayer gaming across their PS Studios as well.



I can't see them not bringing it to PS5, to be honest.
If they are really interested in buying them it makes me question their position going forward with where their games are released.
You wouldn't pay 1 billion for a company that makes its profit off of multiplatform, and then make it PlayStation exclusive. Its profit would drop 80% and be a disaster. Maybe it's a part of a longer game of being more multiplatform?
 

Bo_Hazem

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If they are really interested in buying them it makes me question their position going forward with where their games are released.
You wouldn't pay 1 billion for a company that makes its profit off of multiplatform, and then make it PlayStation exclusive. Its profit would drop 80% and be a disaster. Maybe it's a part of a longer game of being more multiplatform?

I think they'll keep them multi, just lime minecraft with MS. They should as well help them with other work inside their PS Studios, and maybe have some exclusives bits here and there? Or even go the extra mile and tie some to other products like Xperia phones?

Multiplayers aren't the appeal of PS hardcore fans, but they might bring something interesting for a varied selection. Timed exclusives for like 1 month or so could help as well for some content, or exclusive cosmetics.
 

oldergamer

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Hmm interesting. I know some people at DE. Only thing though, warframe is already on all platforms. The newer title that was supposed to be the next thing kinda flopped and they refocused on warframe afterwards. DE has always had a bit of a growth problem as they are in london ontario and just far enough away from toronto to attract a lot of developers

Im not sure about the rest of the studios.
 

Bo_Hazem

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Hmm interesting. I know some people at DE. Only thing though, warframe is already on all platforms. The newer title that was supposed to be the next thing kinda flopped and they refocused on warframe afterwards. DE has always had a bit of a growth problem as they are in london ontario and just far enough away from toronto to attract a lot of developers

Im not sure about the rest of the studios.

Interesting details there. Maybe they can help them grow their studios = profit for all. I still think the main acquisition isn't all about exclusives, maybe they wanna grow their mobile business especially in China and Asia.

And for Warframe, it should be a great investment to even enlarge the studio for other projects. Thanks for the information.
 

Aion002

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They should ask the CC... I mean they should ask Tencent for the money
 
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Away with the fairies
As another poster pointed out in the other rumour thread, Leyou own the company that owns the rights to TellTale games.

Sony could pump a few MP games out, while offering a TellTale style games for their most popular IP's; God of War, TLoU, Uncharted etc. They could even adopt them to VR for PSVR2 on PS5 and have some adventure games through VR.

Either way, this looks like a good move by Sony
 

The Alien

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Sure this addresses Sony multiplayer need.

Splash Damage is a really capable support studio that Microsoft used a lot.

Digital Extremes has Warframe...a lot of value is as a multiplat.

Not a lot of this is lighting the world on fire for me. It seems like a reaction to their need but also all the other rumors of acquisitions floating around.
 
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sublimit

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I think we already had a thread about this.

 
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TheCockatrice

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Well they do need games for PS5 launch. Spider-man and one or two other exclusives is a slow start. If they want people day one they need MP games and to fucking show us those BC games already.
 

Bo_Hazem

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I think we already had a thread about this.


Looked it up but didn't find it, my bad. Thank you.
 
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Bryank75

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There are better options out there.... ioi, Remedy, MiHoYo, Kojima. I think they should just pony up and buy Bethesda for 2.5 to 3 Billion......

1.3 billion for 1 IP that is only moderately successful or 2.5 Billion for Doom, Elderscrolls and Fallout etc...
 

Bo_Hazem

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There are better options out there.... ioi, Remedy, MiHoYo, Kojima. I think they should just pony up and buy Bethesda for 2.5 to 3 Billion......

1.3 billion for 1 IP that is only moderately successful or 2.5 Billion for Doom, Elderscrolls and Fallout etc...

Well, a $1.23 Billion for a bundle of 5 studios isn't bad, and I don't really like Bethesda to be honest. IOI, Remedy, MiHoYo, Kojima are all great, but you go step by step. I think this will help their PS Studios in implementing MP to their SP games, and have new market in the smartphone gaming field.
 
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wipeout364

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I love splash damage, but they can’t make a hit game, I am amazed they managed to stay in business all these years. Maybe Sony could release a PS4 version of Dirty Bomb and beef up it’s content.

Splash damage could also probably do a decent take on SOCOM.
 

Bo_Hazem

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I love splash damage, but they can’t make a hit game, I am amazed they managed to stay in business all these years. Maybe Sony could release a PS4 version of Dirty Bomb and beef up it’s content.

Splash damage could also probably do a decent take on SOCOM.

I personally have no idea about those games and studios, but I think Sony could make them flourish and expand going forward. If all of them seem to be struggling that explains why Sony is bidding on it, as it's very hard to acquire studios that are making good money.
 

oldergamer

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Splash damage would be a solid buy ( 300 employees) but i just read this: https://www.gamesindustry.biz/artic...dering-a-bid-for-digital-extremes-owner-leyou

Sony Corporation is reportedly weighing up a bid for Leyou Technologies Holdings.

The news comes from Bloomberg, which cites an anonymous source close to the matter, who suggests this could spark a bidding war for the Chinese games company.

The Hong Kong-listed Leyou owns Warframe developer Digital Extremes and UK studio Splash Damage, among others.

It is also working with Amazon Game Studios on a Lord of the Rings MMO.

Sony is said to be working with a financial advisor on a potential offer for Leyou. Bloomberg reports this news prompted a 9.8% increase in share price.

Leyou's stock has risen by around 20% since the start of 2020 -- in part by ongoing talks of a takeover -- and values the company at approximately $1.1 billion.

Controlling stakeholder Charles Yuk was previously in talks with mobile publisher iDreamSky to sell a majority stake in Leyou late last year.

iDreamSky was in discussions with CVC Capital Partners for a joint offer that valued Leyou at $1.23 billion, but the COVID-19 pandemic prevented these talks from progressing.

In May, Leyou confirmed it had received a non-binding takeover offer from its rival Zhejiang Century Huatong Group.

Sony's bid is believed to be part of the company's plans to improve its content portfolio. The company's next console, PlayStation 5, is due to release by the end of the year.

So seems legit. However there could be a bidding war if iDreamSky is still interested.

Also the fact this is out and the stock price is going up, that could change things.
 

Bryank75

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Splash damage would be a solid buy ( 300 employees) but i just read this: https://www.gamesindustry.biz/artic...dering-a-bid-for-digital-extremes-owner-leyou



So seems legit. However there could be a bidding war if iDreamSky is still interested.

Also the fact this is out and the stock price is going up, that could change things.
Yeah, they are decent enough teams but PlayStation can make teams themselves, I think the IP's that are coming with the acquisition are pretty weak overall for the asking price.
 
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JohnnyFootball

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There are better options out there.... ioi, Remedy, MiHoYo, Kojima. I think they should just pony up and buy Bethesda for 2.5 to 3 Billion......

1.3 billion for 1 IP that is only moderately successful or 2.5 Billion for Doom, Elderscrolls and Fallout etc...
Buying Bethesda would cost loads more than 3 billion.
 
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Bryank75

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Buying Bethesda would cost loads more than 3 billion.
In May 2016, it was valued at $2.5 billion.
Subsidiary: id Software, ZeniMax Online Studios
Place founded: Rockville

Considering the last Fallout flopped and the next Elderscrolls is way out, Doom is the only big release lately.... so I don't expect the value to have gone up by too much.
 
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Ar¢tos

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Yup, a waste of a billion dollars.

If they wanted some crappy online bullshit, just buy Roblox.
I think you aren't seeing the bigger picture.
They aren't buying the studios for their current output, they are buying them for their potential.
Growing Small/medium size studios with a lot of MP gaming experience (that Sony 1st party is lacking) + Sony tech support and localizations + Sony IPs (MAG, Socom, G-Police, Killzone, etc). It can become very profitable for Sony.

Edit: missed Colony Wars in the examples of Sony titles that could be done as pure MP games.... Unforgivable!!
 
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Bryank75

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I think you aren't seeing the bigger picture.
They aren't buying the studios for their current output, they are buying them for their potential.
Growing Small/medium size studios with a lot of MP gaming experience (that Sony 1st party is lacking) + Sony tech support and localizations + Sony IPs (MAG, Socom, G-Police, Killzone, etc). It can become very profitable for Sony.
Maybe their vision is beyond the scope of mine...

I am just looking at a build vs buy decision.... what is more financially prudent. If they are spending nearly 1.5 billion on 5 studios, they might as well get some awesome IP's that 'move the needle'.

Doom will always be bigger than Killzone. Sony doesn't have anything like Elderscrolls as an exclusive and the other games they make are quite good.

Socom and G-Police would fit with Kojima studios I think..... if you ever played MGO and he has the vision for a re-imagining of G-Police. IMO.
 
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Bryank75

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I don’t know the details might be financially sound or whatever but...meh. I wish they had bought Ready at Dawn.
Gone now.... there are still loads of good buys out there. I just don't know why they are not more pro-active.
You'd think ioi, 4A games, MiHoYo, ZA/UM, Platinum, Remedy or Kojima would be no-brainers.
 
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eastwood333

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I hope it's true since I don't care about Warframe or any of those studios and would rather it be those than some studio I really like
 

jakinov

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I suspect this is an investment more than it is to strengthen PlayStation. Companies have a lot of cash sitting the bank not making them a whole lot of money. Buying a business that makes them money and can tap into a market they aren't so prevalent in.
 

Shin

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I think we already had a thread about this.

There's another, this makes the 3rd thread about a rumor which no site has been able to back up.
Don't care about Leyou, but SNK itself would be interesting.