Tencent buys the owner of Warframe developer Leyou Technologies! This deal was closed today for 1.5 billion US dollars.
- Tencent buys Warframe development studio Digital Extremes
- $1,500,000,000 deal finalized today
- Digital Extremes intends to remain creatively independent
Here’s what you need to know: Leyou Technologies began exclusive talks with Tencent back in July 2020, according to Bloomberg. Other players, including Sony, for example, thus already lost out in the summer. The Chinese gaming company Tencent is now the largest video game company in the world due to its extensive involvement in numerous games.
Deal between Warframe parent company & Tencent closed today
Tencent has now closed the deal with Leyou Technologies – the acquisition for an amount of 1.5 billion US dollars is sealed! Digital Extremes, the Leyou-owned studio behind the MMORPG Warframe, commented on the acquisition in a blog post as follows:
“Yes, we will continue to create great content for Warframe and we will remain creatively independent. Our focus will remain on listening to you, our community, upgrading Warframe based on your feedback, and developing the kind of great stories, gameplay, and incredible new space ninja action you’ve come to expect from us. Tencent is well known for respecting the creative decisions and integrity of its studios, and for giving them the autonomy and independence to experiment, innovate and thrive.”
Expanding power: Tencent’s video game empire
Tencent is gaining ground: The list of Tencent’s holdings in the video games sector is becoming ever more extensive. In addition to direct ownership of developers such as Riot Games, Funcom and Studio Wildcard, the company owns almost 50 percent of Epic Games as well as shares in Activision Blizzard, Ubisoft, Paradox Interactive and many others.
Leyou Technologies: From meat processing to video game company
This is Leyou: Leyou Technologies was originally a Chinese chicken production company – under the name “Sumpo International Holdings Limited”. In 2014, the business expanded to include video games. In 2016, Leyou left meat processing altogether. Since then, the company has focused on video games, and so it was then involved in the developer of Warframe.
Among other things, Leyou Technologies owns shares in the developers of Gears Multiplayer and Gears Tactics (Splash Damage), Call of Duty: Modern Warfare Remastered (Certain Affinity), Halo Infinite and the Lord of the Rings MMO (Athlon Games).
Your opinion: What do you think about Tencent expanding its influence on the video games market? Is it a good development? Or is it absolutely unhealthy for the development of this entertainment genre? Write your opinion in the comments!