Huya fell slightly while Douyu plummeted, following the cancellation of the Tenc...

Huya fell slightly while Douyu plummeted, following the cancellation of the Tencent-led merger- PingWest

Huya fell slightly while Douyu plummeted, following the cancellation of the Tencent-led merger

3 hours ago

After the merger was killed by China‘s top market regulator, Tencent-backed livestreaming platforms Huya and Douyu witnessed an expected decline on Monday’s stock market.

Details: NYSE-listed Huya, 1.65%, fell 1.65% today, closing at $14.88. Currently, its market capitalization is 3.5 billion, which is 60% lower than the highest level in February last year.

NASDAQ-listed DOYU plummeted 8.81% to close at $4.97, with a market value of $1.6 billion. It hit a record high of $20.54 per share in February last year.

The State Administration for Market Regulation (SAMR) announced on Friday that it would prohibit the merger of Huya and Douyu, following an anti-monopoly investigation.

The merger would further strengthen Tencent's dominant position in the game livestreaming sector, which is not conducive to fair market competition and may reduce consumer interests, said the top market regulator.

On Monday, Huya and Douyu issued separate announcements, both expressing that they fully respect and will abide by the SAMR Decision, and will comply with all regulatory requirements, conduct their businesses in accordance with the applicable laws and regulations, and fulfill their social responsibilities.

Context: Huya and Douyu are ranked number one and number two, respectively, as China’s most popular video game-streaming sites.

Last August, Tencent, the world’s biggest games publisher, announced a proposal to consolidate Douyu and Huya. Tencent is Huya’s biggest shareholder with 36.9% and also owns over a third of Douyu.

On January 4, 2021, the SAMR conducted an anti-monopoly review on the merger filed by Tencent.

Recently, along with other internet giants, Tencent was fined by SAMR for violating anti-monopoly rules in 22 mergers and acquisitions deals they made without seeking regulatory approval in advance.

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