Chinese game-centric live streaming platform DouYu reports it has received a preliminary non-binding proposal from Tencent. Tencent proposes a stock-for-stock merger between DouYu and its own game streaming platform Huya, as a result of which Huya or its subsidiary would acquire the shares of DouYu.
Douyu and Huya are competing live streaming sites focused on video games in China. Under the proposed transaction, shareholders of DouYu would receive newly issued Class A ordinary shares of Huya for their respective DouYu shares.
The DouYu board plans to review and evaluate the proposed transaction. Tencent already holds 38 percent of the share capital and voting power of DouYu and is its largest shareholder, The Esports Observer reports.
Tencent also owns 36.9 percent of the share capital of Huya, representing a 50.9 percent majority of Huya’s total voting power.
