Tencent proposes Douyu and Huya merge. In the near future, China’s two leading competitors in esports, DouYu and Huya, could merge into one entity. DouYu International Holdings Limited, is a game-centered live streaming site with a leading value chain for eSports in China.
The company announced it had received a non-binding preliminary letter of proposal from Tencent Holdings Limited, Huya Inc’s holding company. Tencent is planning to combine DouYu and Huya according to the letter dated 10 August 2020.
The letter offers details of a potential stock-for-stock merger, in which Huya or its subsidiary will acquire any outstanding ordinary DouYu share.
DouYu’s press release confirmed that its board of directors is reviewing and evaluating the proposal. The board also issued a caution that no decision has been taken on the matter and any decision would be taken only after careful review and evaluation.