Streaming Giant DouYou Exits $5.3bn Huya Merger Deal

The pullout comes just two two days after China’s market regulator blocked Tencent’s proposal to bring together under one roof the country’s top two videogaming sites


DouYu International Holdings Ltd confirmed on Monday that it had terminated its $5.3 billion deal with Huya Inc – two days after China’s market regulator blocked Tencent Holding Ltd’s plans to merge the country’s top two videogame streaming sites. 

China’s State Administration of Market Regulation (SAMR) announced on Saturday that it would block the deal on antitrust grounds.

Tencent first announced plans to merge Huya and DouYu last year in a tie-up designed to streamline its stakes in the firms, which were estimated by data firm MobTech to have an 80% share in a market worth more than $3 billion.


Also on AF TV: Explained: China’s crackdown on DiDi Chuxing


Tencent is Huya’s biggest shareholder with a 36.9% stake and also owns over a third of DouYu, with both firms listed in the United States, and worth a combined $5.3 billion in market value.

US-listed shares of DouYu were down 2% pre-market, while those of Huya were down 1%.

The deal termination comes amid an ongoing crackdown on Chinese tech companies from the government. Earlier this year, the anti-monopoly regulator placed a record $2.75 billion fine on e-commerce giant Alibaba for engaging in anti-competitive behaviour.


  • Reporting by Reuters


Read more:

China to Order Tencent Music to Give Up Music Label Exclusivity – Sources

China Orders Firms to Undergo Security Review Ahead of Overseas Listings


Tiyashi Datta and Sean O'Meara

Recent Posts

VW Vows to Stay Ahead as China EV Revolution Gathers Pace

Volkswagen executive Stefan Mecha said the firm is committed to investing $16.26 billion in the…

7 hours ago

China Developer Sunac Posts $2 Billion 2022 Core Loss

The real estate firm was among many Chinese developers that defaulted last year as the…

8 hours ago

China’s Huawei Claims ‘Crisis is Over’ After Revenue Rise

The firm said it was now "out of crisis mode” following years of painful US…

9 hours ago

China to Check US Chip-Maker Micron Products in Security Review

The Cyberspace Administration of China said the move was aimed at protecting supply chains and…

1 day ago

Elon Musk Seen Hoping to Meet China PM on Next Visit

Musk met Li Qiang in 2019 when he was party secretary in Shanghai. Sources say…

1 day ago

Russia Wants All India Trade in Rupee-Ruble – Firstpost

Increasing oil deals between the two countries have already begun to corrode the US dollar’s…

1 day ago