Chinese video game publisher iDreamSky Technology Holdings Ltd. is exclusively discussing a deal to buy Hong Kong-based game developer Leyou Technologies Holdings Ltd. for roughly $1.4 billion, Bloomberg News reported, citing people familiar with the matter.
Co-investors are being sought by iDreamSky to help fund the potential transaction, sources said, adding that potential partners could include private equity firms and other gaming companies. Bain Capital LP, CVC Capital Partners Ltd. and KKR & Co. Inc. were earlier reported to have moved to the second round of bidding for Leyou.
Credit Suisse Group AG reportedly is advising iDreamSky on the potential deal.
Leyou is the developer of the games Warframe and Dirty Bomb. IDreamSky is backed by Tencent Holdings Ltd.
Representatives for iDreamSky and Credit Suisse did not comment on the matter, while a Leyou representative did not immediately respond to requests for comment, according to Bloomberg.