Daily Management Review

Tencent to create $10B worth gaming platform


Chinese company Tencent Holdings Ltd. is in talks to merge two Chinese streaming gaming platforms - Huya Inc. and DouYu International Holdings Ltd. with the aim of creating a unified streaming service, Bloomberg reported, citing sources familiar with the matter.

Chris Yunker
Chris Yunker
According to sources, Tencent Holdings, which owns 37% of Huya and 38% of DouYu, has been discussing a merger for several months now. "Although the details are yet to be finalized," the sources added. According to one of them, Tencent aims to become the largest shareholder in the combined company. If the deal is concluded, the agency notes, Tencent will become the leader in this segment of the Chinese market, which is estimated at $ 3.4 billion in 2020.

The agency notes that if the deal is closed, the merger will create a service with more than 300 million users and a total market value of $ 10 billion. This will allow Tencent to strengthen its position in the domestic market.

DouYu shares are up 13% in US pre-trading, while Huya is up 12%. Tencent shares on the Hong Kong stock exchange gained 2%.

Tencent is a Chinese investment holding company founded in 1998. Tencent subsidiaries specialize in various areas of high-tech business, including various Internet services, developments in the field of artificial intelligence and electronic entertainment.

source: bloomberg.com