Tencent Holdings Limited (SEHK:700) is in talks to acquire Leyou Technologies Holdings Limited (SEHK:1089), people familiar with the matter said, joining potential suitors including Sony Corporation (TSE:6758) in a battle for the Chinese gaming firm. An announcement on the discussions could come as soon as July 10, 2020, said the people, who asked not to be identified as the information is private. Trading in Leyou, which has a market value of about $1.1 billion, was suspended pending a takeover code announcement.

Leyou's controlling shareholder Charles Yuk had been in talks with iDreamSky Technology Holdings Limited (SEHK:1119) for a majority stake sale since late last year. Talks between Leyou and Tencent are ongoing and could fall apart, the people said. A representative for Leyou declined to comment, while a representative for Tencent had no immediate comment.