Forums - Sony Discussion - Sony Weighs Bid for Gaming Firm Leyou (Splash Damage, Digital Extremes)

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https://www.bnnbloomberg.ca/sony-weighs-bid-for-hong-kong-listed-gaming-firm-leyou-1.1459657

Bloomberg) -- Sony Corp. is weighing a bid for Leyou Technologies Holdings Ltd., people familiar with the matter said, paving the way for an intensified bidding war for the Hong Kong-listed gaming firm.

Leyou was listed in Hong Kong in 2011 and counts among its titles the free shooting games Warframe and Dirty Bomb. It’s also working with Amazon.com Inc. to co-produce a video game based on the popular fantasy series “The Lord of the Rings,” according to its website.



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Hm, the LOTR angle makes me wonder if that is related to Warner Games sale, although Warner's whole price tag is too huge to justify with exclusive projects. OTOH, Leyou's LoTR contract could let Sony grab the most appetizing project, which may be ongoing considering Amazon probably wants to run it as long as GoT. Not that I'm into their older games, but Sony could see potential in the studio itself too, and combined with IP access could be attractive.



mutantsushi said:

Hm, the LOTR angle makes me wonder if that is related to Warner Games sale, although Warner's whole price tag is too huge to justify with exclusive projects. OTOH, Leyou's LoTR contract could let Sony grab the most appetizing project, which may be ongoing considering Amazon probably wants to run it as long as GoT. Not that I'm into their older games, but Sony could see potential in the studio itself too, and combined with IP access could be attractive.

I think there is no connection. That said, it's not WB for sale, it's each individual game studio they own isn't it?



Well they always had close cooperation via Warframe and with DE, so I guess this could make sense. But I doubt they could get any access to LotR ip exclusivity in any way, shape or form.



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Leyou also owns Splash Damage which developed Gears Tactics this year.



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Leyou owns SNK, Splash Damage, and Digital Extremes, also a 20% stake in Certain Affinity, and Sony would apparently have the option to buy 100% of Certain Affinity for around $150m if they bought Leyou. This would be a big move by Sony for sure. I'm guessing they are doing this because they are concerned about MS going for WB, considering the rumors that WB wants to sell their gaming division with several parties interested?

At this rate we are going to end up with so many developers who once made multiplats making exclusives instead. Good thing I'm a multi platform gamer, it's looking like it's going to really suck to be a single platform gamer in the future.

Last edited by shikamaru317 - on 02 July 2020

shikamaru317 said:

Leyou owns SNK, Splash Damage, and Digital Extremes, also a 20% stake in Certain Affinity, and Sony would apparently have the option to buy 100% of Certain Affinity for around $150m if they bought Leyou. This would be a big move by Sony for sure. I'm guessing they are doing this because they are concerned about MS going for WB, considering the rumors that WB wants to sell their gaming division with several parties interested?

At this rate we are going to end up with so many developers who once made multiplats making exclusives instead. Good thing I'm a multi platform gamer, it's looking like it's going to really suck to be a single platform gamer in the future.

I think it's a mistake to think of this as some reactionary move to rumours. Leyou's market value is above $1 billion which is not pocket change, and every entity Sony can get from this deal is not accustomed to console development.

If anything this is a far wider player happening that Sony have talked about in the past. Digital Extreme is in Canada, a place Sony has no studios. This deal will include mobile, PC, multiplatform, MP, shooter and F2P experiences.

I imagine some studios like Splash Damage will just become another PS entity, but this move isn't only for PS development, not at that price.

As for SNK, I wonder if they do truly fall under this deal. That would be an interesting get. Still, we don't know if Sony goes through with this, or if Leyou choose another bidder. 



twintail said:
shikamaru317 said:

Leyou owns SNK, Splash Damage, and Digital Extremes, also a 20% stake in Certain Affinity, and Sony would apparently have the option to buy 100% of Certain Affinity for around $150m if they bought Leyou. This would be a big move by Sony for sure. I'm guessing they are doing this because they are concerned about MS going for WB, considering the rumors that WB wants to sell their gaming division with several parties interested?

At this rate we are going to end up with so many developers who once made multiplats making exclusives instead. Good thing I'm a multi platform gamer, it's looking like it's going to really suck to be a single platform gamer in the future.

I think it's a mistake to think of this as some reactionary move to rumours. Leyou's market value is above $1 billion which is not pocket change, and every entity Sony can get from this deal is not accustomed to console development.

If anything this is a far wider player happening that Sony have talked about in the past. Digital Extreme is in Canada, a place Sony has no studios. This deal will include mobile, PC, multiplatform, MP, shooter and F2P experiences.

I imagine some studios like Splash Damage will just become another PS entity, but this move isn't only for PS development, not at that price.

As for SNK, I wonder if they do truly fall under this deal. That would be an interesting get. Still, we don't know if Sony goes through with this, or if Leyou choose another bidder. 

Yeah, I do think that Digital Extremes would likely stay multiplat, Warframe is a big revenue source, and they'd lose alot of that revenue by cancelling Warframe support for other versions of the games, so Warframe would end up like Minecraft for Microsoft. The Lord of the Rings MMO that Leyou is doing for Amazon would also stay multiplat most likely.

I would definitely expect Splash Damage and Certain Affinity to be put to work on Sony exclusives though (possibly with PC versions in addition to PS5, as Sony has been warming up to PC development recently), especially since they both specialize in shooters, which is an area where Sony's 1st party is currently lacking, since Insomniac is no longer doing Resistance and Guerrilla is no longer doing Killzone. 

It's kind of confusing as to rather SNK would be included or not. My understanding is 37 Games and Orient Securities, in a joint venture, invested $63m into Leyou so that Leyou could acquire the SNK CEO's 81% share of SNK. So I'm not sure if that means that SNK would go to whoever buys Leyou, or if SNK ownership would go to 37 Games and Orient Securities, since they are the ones who invested the money into Leyou that was used to acquire SNK.

Last edited by shikamaru317 - on 02 July 2020

Splash Damage would be a nice grab, and a kick in the balls to xbox lmao.
Certain Affinity has bascially only made xbox/pc ms titles... how can you buy them out? their basically just a small step away from being Xbox 1st party.



I don't like this. I don't like these big console makers playing monopoly. Stop buying everything. Leave SNK alone FFS. Leave DE alone. If WB is for sale then only a 3rd party publisher should buy them.



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