Tencent recently entered exclusive talks to buy Chinese gaming company Leyou, which produces the popular Warframe series of video games, and intends to take the company private.
Leyou confirmed details of the agreement in a Friday press release. Bloomberg, which first reported the deal, noted the Hong Kong-listed company was worth around $1.1 billion before its trade was suspended in the lead-up to the announcement.
China-based tech conglomerate Tencent serves as the world’s largest gaming company by market value, worth around $760 billion. Tencent and its subsidiaries own popular titles including Fortnite, as well as a 40% stake in the publisher of League of Legends.
Bloomberg previously reported that Sony had submitted bids to Leyou’s controlling shareholder Charles Yuk, as had Tencent-backed rivals Zhejiang Century Huatong and iDreamSky.
Trade in Leyou stock, which is up 20% in 2020, is set to resume on Monday. Tencent, on the other hand, is up 40% year-to-date.