tradingigbtc

China’s live game streaming firms Huya, DouYu to merge

An online anchor is seen at the stand of live streaming platform Douyu during the Comic Up 26 on July 25, 2020 in Shanghai, China.

VCG | Visual China Group | Getty Images

Chinese live streaming platform, Huya will buy DouYu International Holdings in a stock-for-stock merger deal, the Chinese live game streaming companies said on Monday.

Tencent, which is Huya’s biggest shareholder and also owns over a third of DouYu, had been pushing for the deal for months, Reuters reported in August.

DouYu will receive 0.730 American depositary shares of Huya, representing a premium of 34.5% to DouYu’s last close of $14, valuing it at nearly $6 billion, according to Reuters calculation based on 317.5 million shares.

The merged entity would have a combined market share of more than 80% in the country, according to data from MobTech.

Huya and DouYu said their shareholders will each hold about 50% shares of the combined company on a fully diluted basis.

Huya Chief Executive Officer Rongjie Dong and his DouYu counter-part Shaojie Chen, will be co-CEOs of the combined company.

Tencent will integrate its game live streaming business under its “Penguin” arm with the combined businesses of Huya and DouYu after the merger for a total consideration of $500 million.

DouYu’s U.S.-listed shares, which have risen more than 65% this year, were up 23.2% before the bell.

Source Article