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Rumours suggest iDreamsky is attempting a leveraged buyout of Leyou

Rumours suggest iDreamsky is attempting a leveraged buyout of Leyou

Chinese mobile publisher iDreamSky is in talks with Leyou Technology Holdings to acquire a majority stake.

As reported by Bloomberg, the deal is worth around $1.4 billion.

Both companies are floated on the Hong Kong stock exchange but Leyou is currently the larger, and better performing, of the pair. 

It's thought that iDreamsky is attempting to put together a group of investors, including its minority shareholder Tencent, to raise the money required to buy out the 69 per cent stake of Leyou's CEO.

Valuations

As it stands, the news boosted Leyou’s market cap 16 per cent to $996 million (HK$7.8 billion), compared to $743 million for iDreamsky. 

iDreamSky is best known as the Chinese publisher of western mobile games such as Temple Run, Monument Valley, GardenScapes, Toy Blast and Terraria.

Leyou has acquired western PC/console developers such as Digital Extremes, SNK Playmore and Splash Damage. 


Staff Writer

A freelance writer based in Berkshire. Besides PG and PCGI she has written as a guides writer, specialising in RPG's and horror.

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