Sony is one of the biggest companies when it comes to electronics. It is also one of the frontrunners in the gaming industry. It is just about to release the new Playstation console. They are standing on the brink of the next generation of gaming. It seems that no one can put a stop to the desires of Sony.
This is further proven by the recent attempts made by Sony to up their ante in the Leyou Technology Holdings. This is the parent company of Splash Damage, the UK Studio company. So, without further delay, let us look at what this news is all about.
This news surfaced when an anonymous source close to the company revealed some things to Bloomberg. This name of the source was not given but some information has been released. They have said that this may spark up a bidding war in the Chinese gaming company.
But let us look at what Leyou Holdings is all about. The Hong Kong-listed Leyou owns Warframe developer Digital Extremes and UK studio Splash Damage, among others. It has also been revealed that Sony has hired a financial advisor to invest. This sudden interest has been good for the company. It has led to a 9.8% increase in the Share price of the company.
Talks of takeover by Sony
There have also been talks of a takeover. The stock of the company has also risen by at least 20% since the start of the year. The company is currently valued at around $1.1 billion. There has also been news that the controlling shareholder Charles Yuk has been in talks to sell its equity to mobile publisher iDreamSky.
iDreamSky was also in talks with CVC Capital to offer $1.23 billion for the takeover of Leyou. But the COVID-19 pandemic has prevented these talks from arriving anywhere concrete. Leyou has also confirmed it had received a non-binding takeover offer from its rival Zhejiang Century Huatong Group.
It is believed to be a conscientious effort on the part of Sony to improve the portfolio of the company. This may also help ahead of its release of the Playstation 5 console.