Tencent Holdings, according to various credible reports, wants to merge the two Chinese live streaming giants, Huya and DouYu. Resultantly, the shares of both these companies popped in response to Tencent’s idea.
The market capitalization of both Huya and DouYu is huge, both sitting at $5.9billion and $4.9billion respectively. And according to Reuters, if this merger happens it will also include Tencent’s e-Game streaming platform which is the fourth largest in China.
Though the officials at Tencent, Huya, and DouYu have yet to confirm or deny the news and haven’t yet released any official statement.
Hershey was also of the view that the Huya/DouYu merge will not only maintain a stronghold on the Chinese market but also provide for a tough competition to the US-based Twitch outside the US. Huya’s Nimo TV’s success in Latin America is a great example.
It is to be noted that this merger deal is still in the nascent stage and a lot of information is yet to surface soon.
Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry.
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