Chinese internet and gaming giant Tencent is reportedly about to acquire games company Leyou Technologies. That is the maker of free shooting games like Warframe and Dirty Bomb.
The parties are in talks about a deal in which Leyou is valued at 1.3 billion dollars, about 1.1 billion euros. Tencent has the largest online gaming empire in the world.
It owns, or through Epic Games primarily owns, Fortnite, League of Legends and Call of Duty, among others.
According to the sources, negotiations with Leyou are at an advanced stage, and an agreement could be signed this week. Charles Yuk, Leyou’s major shareholder, would transfer his entire stake to Tencent.
Tencent has also recently come under fire from US President Donald Trump, who recently signed a decree to ban certain transactions with the hugely popular Asian app WeChat in the United States.
According to Trump, the Chinese Communist Party is threatening to gain access to personal information of Americans through data from WeChat.
It has now become clear that the ban on WeChat is probably not as drastic as feared. That is why the stock price of Tencent showed an evident recovery in the Hong Kong stock market on Monday.