Sony to buy Warframe parent company Leyou Technologies

Yolanda Curtis
July 4, 2020

While some of these names bear little notoriety, Leyou is now valued at $1.23 billion and collaborates with major gaming companies often.

The news of Sony's involvement led to a 9.8 per cent increase in valuation of Leyou's stock.

The buyout will provide Sony with a host of big free-to-play breadwinners such as Warframe, Dirty Bomb, and other projects such as the forthcoming Lord of the Rings MMO. It additionally owns North American and European Samurai Shodown publisher Athlon Games, which is working with Amazon to produce an MMORPG based on The Lord of the Rings.

You may not have heard of Leyou Technologies, but you likely have heard of Warframe, developed by Digital Extremes. Leyou's arsenal of licensed and F2P games will significantly add to those earnings and give the Japanese games giant a stronger foothold in the Chinese and global markets.

Chinese firm IDreamSky was in talks to buy Leyou in December 2019. Leyou's controlling shareholder is said to be chomping at the bit to settle on a buyer and sign an agreement as early as this month. People familiar with the situation note that Sony is hoping to bolster its content library and believes it can leverage its "greater certainty of financing" to secure the deal. Unless this bid and eventual purchase were to go through, it is now uncertain whether these studios will be merged into Sony Worldwide Studios or remain independent.

Talks are ongoing and a final decision has not been made, and other bidders can still emerge, the report concluded. Sony's chief financial officer has said that the company is seeking out acquisitions in order to support the launch of PlayStation 5 in late 2020, so we'll watch this space.

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