Tencent in talks to acquire HK-listed gaming firm Leyou

FILE PHOTO: People visit Tencent's booth at the World 5G Exhibition in Beijing, China, Nov. 22, 2019. REUTERS/Jason Lee/File Photo

Tencent Holdings Ltd. is in talks to acquire Hong Kong-listed Leyou Technologies Holdings Ltd., people familiar with the matter said, joining potential suitors including Sony Corp. in a battle for the Chinese gaming firm.

An announcement on the discussions could come as soon as Friday, said the people, who asked not to be identified as the information is private. Trading in Leyou, which has a market value of about $1.1 billion, was suspended pending a takeover code announcement.

Leyou’s controlling shareholder Charles Yuk had been in talks with Tencent-backed iDreamSky Technology Holdings Ltd. for a majority stake sale since late last year. In May, Leyou confirmed it received another non-binding offer from Zhejiang Century Huatong Group Co., a Shenzhen-listed gaming firm that also counts Tencent as a shareholder.

Tencent’s offer comes amid an escalating bidding war for Leyou, as Sony is also weighing a bid, Bloomberg News reported earlier this month.

The Chinese tech giant is still deliberating on the structure of the offer, which could involve iDreamSky and Century Huatong, one of the people said.

Talks between Leyou and Tencent are ongoing and could fall apart, the people said. A representative for Leyou declined to comment, while a representative for Tencent had no immediate comment.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.