Chinese conglomerate Tencent Holdings is reportedly near reaching a final deal with Leyou Technologies and will be taking the firm private in a deal estimated to be valued at $1.3 billion, according to a recent report by Bloomberg.

　　Leyou Technologies, developer of titles such as Warframe, has been in discussion with other companies over recent months that seemed eager to acquire the Chinese gaming firm. As recently as July, Leyou's stock trading was paused temporarily as the company first began exploring an exclusive agreement with Tencent Holdings.

　　The Board announces that on 10 July 2020 (before trading hours), Mr. Yuk and the Company

　　entered into an exclusivity agreement (the “Privatization Exclusivity Agreement”) with

　　Tencent Mobility Limited (the “Potential Acquiror”), a wholly-owned subsidiary of Tencent

　　Holdings Limited, a company whose shares are listed on the Stock Exchange (stock code:

　　700), regarding a possible acquisition and privatization of the Company (the “Possible

　　Privatization”).

　　As the reporting currently stands, negotiations are "in an advanced stage" with an agreement possibly announced as early as this week, according to people familiar with the matter. The current state of the Tencent and Leyou merger indicates that the former is in talks to present an offer price range of roughly HK$3.30 - HK$3.40 for each Leyou share. Charles Yuk, Leyou's primary shareholder, plans to sell his stake in the company in its entirety, holding approximately 69% of the company's stock according to 2019's financial annual report.

　　Leyou Technologies owns Warframe developer Digital Extremes, Splash Damage, and is developing a Lord of the Rings MMORPG in collaboration with Amazon Game Studios and Middle-Earth Enterprises.