China’s two leading esports competitors, DouYu and Huya, could merge into one entity in the near future. DouYu International Holdings Limited, is a game-centric live streaming platform that has pioneered eSports value chain in China. The company revealed that it had received a preliminary non-binding proposal letter from Tencent Holdings Limited, the holding company of Huya Inc. As per the letter dated August 10, 2020, Tencent proposes for merger of DouYu and Huya.
The letter offers details about a possible stock-for-stock merger, by which Huya or its subsidiary would acquire each outstanding ordinary share of DouYu.
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.
By Niji Narayan
Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.