Chinese streaming company DouYu ends $ 5.3 billion merger with Huya
July 12 (Reuters) – DouYu International Holdings Ltd (DY8Ay.F) on Monday announced that it had ended its $ 5.3 billion deal with Huya Inc (HUYA.N), two days after China’s market regulator had blocked plans by Tencent Holding Ltd (0700.HK) to merge the country’s two top video game streaming sites.
China’s State Administration of Market Regulation (SAMR) said on Saturday it would block the deal on antitrust grounds, confirming an earlier Reuters report. Read more
Tencent first announced plans to merge Huya and DouYu last year as part of a merger to streamline its stakes in companies, which have been estimated by data firm MobTech to have an 80% stake in a market worth over $ 3 billion.
Tencent is Huya’s largest shareholder with a 36.9% stake and also owns more than a third of DouYu, with the two companies listed in the United States, and representing a combined market value of $ 5.3 billion. dollars.
DouYu’s U.S.-listed shares were down 2% pre-market, while Huya’s (HUYA.N) shares were down about 1%.
The deal’s termination also comes amid an ongoing government crackdown on Chinese tech companies.
Report by Tiyashi Datta in Bangalore; Edited by Ramakrishnan M.
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