Skip to main content

Market Overview

China's Tech Crackdown Turns Toward Tencent-Backed Douyu, Huya Merger

China's Tech Crackdown Turns Toward Tencent-Backed Douyu, Huya Merger

China’s market regulators have initiated an investigation into the merger of Tencent Holdings ADR (OTC: TCEHY)-backed live streaming platform Douyu International Holdings Ltd (NASDAQ: DOYU) and video game publisher and live streamer Huya Inc ADR (NYSE: HUYA), Reuters reports.

What Happened: The Huya-Douyu merger deal announced in October, an all-stock deal, was initiated after Tencent had pushed both companies into re-organization. The deal also received written consent from Joyy Inc (NASDAQ: YY), one of Huya’s shareholders with a significant stake.

For each ADS held in Douyu, Huya agreed to pay 0.730 ADS (equal to 1 Huya Class A stock) in consideration.

The details about the latest investigation are still unclear. 

Why Does It Matter: Off-late, the Chinese authorities are probing into the workings of its tech companies and adherence to regulatory disclosures, reports China Daily.

Reportedly, Tencent was recently fined approximately RMB 500,000 (roughly $76,000) for its deal with the Chinese entertainment company, New Classics Media. Alibaba Group Holdings Ltd (NYSE: BABA) was also fined a similar amount this week over its Intime Retail (Group) Co Ltd deal.

Price Action: In the pre-market session on the last check Monday, DOYU was trading lower by 3.5% at $11.30, HUYA is down 1.33% at $20.08.


Related Articles (TCEHY + DOYU)

View Comments and Join the Discussion!

Posted-In: Government M&A News Regulations Global Top Stories Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at