IDreamSky in talks to buy Hong Kong games firm Leyou

IDreamSky in talks to buy Hong Kong games firm Leyou

South Korean games firm IDreamSky is apparently in discussions about buying Hong Kong's Leyou Tech Holdings.

That's according to Bloomberg, which reports that the former - which is backed by Chinese giant Tencent - is looking to snap up the latter for a cool $1.4bn. IDreamSky is on the hunt for co-investors to help fund such a deal. Credit Suisse is working on the deal, apparently.

At the time of writing, IDreamSky has a market cap of HK$5.7bn ($728.2m) with its share price currently sitting at HK$4.55 ($0.58) - half its 52-week high of HK$9.70 ($1.24). Meanwhile, Leyou's market cap stands at a cool HK$7.77bn ($992.7m) with a current share price of HK$2.52 ($0.32), slightly up on the HK2.18 ($0.28) that the firm started the year on.

Leyou is a holding company in the games industry that owns Warframe (pictured) maker Digital Extremes as well as Splash Damage of Brink and Dirty Bomb fame. Amusingly it actually started out primarily as a chicken meat supplier called Sumpo Food Holdings, before moving into the games business in October 2014 with the purchase of Digital Extremes.

In 2015, it rebranded as Leyou Technologies Holdings and sold its chicken business in August 2016 to focus on its new-found games success. In August of this year, Leyou backed LCG Entertainment, the company which owns the assets left in the remains of The Walking Dead firm Telltale following its implosion during 2018.

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.