The country’s No1 gaming and social media company wanted to bring together its top two streaming sites but regulators are poised to halt the deal over its refusal to give up its exclusive rights
Internet giant Tencent’s plans to merge the country’s top two videogame streaming sites, Huya and DouYu, is set to be blocked by China’s antitrust watchdog, sources have revealed.
The regulator is set to formally call a halt to Tencent Holdings Ltd’s plan after it’s said to have failed to address the State Administration of Market Regulation’s (SAMR) demands that it gives up its exclusive rights.
The internet giant recently withdrew the merger application for an antitrust review and refiled it after SAMR told the company it could not complete the review of the merger within 180 days since its first filing.
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Separately, Tencent’s plan to take search engine Sogou private will be approved this month by SAMR. Reuters reported in April that the regulator was ready to clear the plan.
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% slice of a market worth more than $3 billion and growing fast.
E-SPORTS TOURNAMENTS
Huya and DouYu are ranked No1 and No2, respectively, as China’s most popular videogame streaming sites, where users flock to watch e-sports tournaments and follow professional gamers.
Tencent is Huya’s biggest shareholder with 36.9% and also owns over a third of DouYu, with both firms listed in the United States, and worth a combined $6 billion in market value.
- Reporting by Reuters
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