Image Frame Investment, a wholly-owned subsidiary of Tencent, acquired Leyou Technology at a transaction price of approximately US$1.5 billion. Tencent completed the acquisition by paying in cash.
According to public information, Leyou Technology was listed on the Hong Kong Stock Exchange in 2011, and mainly engaged in the business of developing and releasing both PC and console games.
In the past few years, the company has acquired multiple overseas game studios, including Digital Extremes, the developer of Warframe, Splash Damage, the developer of Gears of War, and Athlon Games, the US developer of Lord of the Rings’ MMORPG game.
Currently, Warframe is Leyou Technology's head product, which was launched in 2013 and released both on PC and console platforms.
In 2019, the annual revenue from the game solely reached US$175 million, accounting for 82% of Leyou Technology’s total revenue in that year.
Also, Leyou Technology has successively obtained game adaptation authorizations for various IPs including Transformers and Civilization through mergers and acquisitions.
According to Leyou Technology's interim results, the company's revenue in the first half of 2020 has reached US$90.692 million, a year-on-year decrease of 14.2%. During the reporting period, the company had a net loss of US$5.778 million.