UPDATE: Jagex is in talks over a proposed buy-out by Chinese mining company Shandong Honda.
The news was initially announced by the Financial Times, but Jagex has told MCV that the deal hasn't been signed yet, and the firm is continuing as normal.
"Jagex has entered into a non-exclusive, non-binding arrangement for a potential acquisition," said the firm in a statement. "The negotiations surrounding the acquisition are ongoing and it remains very much business as usual for the Company."
The company told its fans on its forum that it's "getting attention from the East and the biggest market in the world, China, is knocking on our door. Jagex's shareholders have received offers of interest and have responded positively to an approach from a Chinese company.
"Jagex is in early stage discussions with the firm in question, but we must stress that they may – or may not – materialise into anything. However, should they come to fruition, it would potentially allow us access to the Asian marketplace to a high level.
"What does this mean for the plans we have for our games and our fantastic community? Put simply, our plans, including the launch of NXT, Zeah, Chronicle: RuneScape Legends, God Wars Dungeon 2, and RuneScape: Idle Adventures, remain on track."
Shandong Honda - best known for mining iron and copper – has acquired Jagex for $300m, the Financial Times has reported.
Jagex is best known for Runescape, and was on-course for a strong financial year. The firm had rebounded after a series of disappointing mobile game flops, plus the collapse of its ambitious MMO Transformers Universe.
It was the biggest independent UK games publisher and developer, with 200m accounts on Runescape.
The Chinese firm, which is a loss-making business, is looking to transform its business through mergers and acquisitions.
US legal experts Sadden is representing Shandong in its acquisition.
More to follow.