Wednesday, 2023 December 6

CHINA BRIEF | Tencent is pressing for stock-for-stock merger of Douyu, Huya

Tencent Holdings (HKSE: 0700) is pushing forward a combination of China’s biggest gaming livestreaming platforms Douyu (NASDAQ:DOYU) and Huya (NYSE: HUYA), proposing a conversion of all Douyu shares into Huya stock, according to the preliminary non-binding proposal letter the two companies received on August 10.

Meanwhile, Huya’s parent company JOYY Inc has entered into a definitive share transfer agreement with a Tencent subsidiary to transfer 30 million Class B ordinary shares of Huya to Tencent at a price of USD 810 million. Tencent currently holds a 38% stake of Douyu and 37% of Huya. Following the transaction, Tencent’s shareholding in Huya will increase to 51%.

The deal could see a combined online giant with more than 300 million users and a market value of USD 10 billion. Douyu and Huya stock opened significantly higher on Monday after the announcement, but later tumbled during the session. Douyu shares declined 8.51% to USD 13.97, while Huya closed at USD 24.04, down 9.93%. Tencent stocks climbed 3.09% to HKD 517.5 (USD 66.77) on Tuesday morning.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China. 

Wency Chen
Wency Chen
Wency Chen is a reporter KrASIA based in Beijing, covering tech innovations in&beyond the Greater China Area. Previously, she studied at Columbia Journalism School and reported on art exhibits, New York public school systems, LGBTQ+ rights, and Asian immigrants. She is also an enthusiastic reader, a diehard fan of indie rock and spicy hot pot, as well as a to-be filmmaker (Let’s see).

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