On the evening of August 10, a notice was issued in front of the betta dish that Tencent (00700) had received a preliminary proposal to merge Betta and Huya. Meanwhile, huanju group announced that it would transfer 30 million shares of Huya（ HUYA.US ）Class B common shares, with a total value of $810 million in cash.
in accordance with the proposal, tiger tooth or its subsidiaries will acquire all of the outstanding common shares (including common shares represented by American Depository shares) of Betta through a share exchange transaction. In addition, douyu shareholders will receive an agreed number of new class a common shares issued by Huya in exchange for their respective Betta shares. The date of Tencent’s preliminary proposal letter is August 10, 2020.
the betta Board plans to review and evaluate the proposed transaction. The betta board reminded shareholders and others considering trading in the company’s shares that the board had just received this proposal letter and had not had the opportunity to review and evaluate the proposed transaction carefully or to make any decision on the company’s response to the transaction. The betta board cannot guarantee that any final offer will be made, that any final agreement relating to the proposed transaction will be executed, or that the transaction or any other transaction will be approved or completed.
previously, on August 5, there was a media report that the merger of tiger tooth and Betta was about to be confirmed. On that day, the stock price of tiger tooth rose by 7.8%, and that of Betta rose by 6%.
once this transaction is completed, a live broadcast giant with a total market value of $10 billion may emerge after the merger of Betta and tiger teeth. According to iResearch, the revenue of China’s live game industry will reach 20.81 billion yuan in 2019, with tiger teeth and Betta accounting for 40.25% and 35% of the market share respectively.
today, Betta also released its financial report for the second quarter of 2020. According to the financial report, the total revenue of Betta in the second quarter reached 2.508 billion yuan, up 33.9% year-on-year, and the gross profit reached 523 million yuan, up 73.7% year-on-year. In terms of live broadcasting, in the second quarter of this year, the income of direct broadcast of Betta increased by 35.8% from 1.708 billion yuan in the same period of 2019 to 2.320 billion yuan.
in April, Tencent exercised its share option and acquired 16.5 million shares of class B common shares of Huya group from huanju group with a cash of $263 million, becoming the largest controlling shareholder of Huya, with the voting rights increased to 50.1%.
in addition, according to the documents submitted by Betta to the securities and Exchange Commission (SEC) in April this year, Tencent was the largest shareholder of Betta, holding 38% of the shares of Betta as of March 31, 2020.