Tencent Holdings, according to various credible reports, wants to merge the two Chinese live streaming giants, Huya and DouYu. Resultantly, the shares of both these companies popped in response to Tencent’s idea.
Tencent Holdings, entertainment, and the tech giant has more than one-third share in both Huya and DouYu and wants to become the largest stakeholder of the combined live-streaming platform. The market capitalization of both Huya and DouYu is huge, both sitting at $5.9billion and $4.9billion respectively. And according to Reuters, if this merger happens it will also include Tencent’s e-Game streaming platform which is the fourth largest in China.
Games Podcast Episodes
If you want to know more about esports, blockchain, investors in gaming, then click here for our episodes.
Commenting on the reports, Roundhill Investments CEO Will Hershey believed that such a merger would result in the culmination of the consolidation in-game live-streaming market in China. He said, “A combination of DouYu and Huya, the top two players in the market, would create an entity that controls a large majority of the $3+ billion markets.” Furthermore, such a step would shift the power from content creators to the platform, in the past content creators have commanded hefty salaries.
Hershey was also of the view that the Huya/DouYu merge will not only maintain a stronghold on the Chinese market but also provide for a tough competition to the US-based Twitch outside the US. Huya’s Nimo TV’s success in Latin America is a great example.
A research analyst at ETF, Pedro Palandrani said that Huya/DouYu consolidation will result in a new entity with a huge market share of more than 300 million users of live-streaming gaming.
It is to be noted that this merger deal is still in the nascent stage and a lot of information is yet to surface soon.
Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry.
With over 20+ years of experience, well known publishers, AAA+ game developers, serial gaming entrepreneurs and management teams of gaming corporations consult him on matters that behold financial, technical, operational, strategic and commercial.
I am observing and overseeing several boards of gaming companies. My trademark is to listen, strategize and give feedback to the stakeholders involved. I also represent management/founders towards shareholders and vice versa.