China’s two largest games live streaming companies Huya and DouYu, both of which have U.S. share listings, are to merge. The deal was initiated by social media, games and streaming giant Tencent.
According to terms published on Monday, the shareholders of the two companies will come out roughly equal, and Huya will make an all stock offer for the shares of DouYu. Reuters calculates that DouYu is valued at $6 billion by the deal terms.
Huya CEO Dong Rongjie and his DouYu’s Chen Shaojie, will be co-CEOs of the combined company.
At the same time, it has also been agreed that Tencent will sell its own game live streaming business Penguin eSports for $500 million, after the Huya-DouYu deal is completed. That will enable a three-way consolidation of the sector.
Assuming that the deal receives regulatory approval and closes in the first half of 2021, the merged company will be