According to the douyu announcement, Tencent’s initial proposal proposes that douyu and Huya enter into a share exchange and merger agreement. Huya or its subsidiaries will acquire each issued common share (including common shares represented by American Depository shares) of douyu, and douyu shareholders will receive the agreed number of new class a common shares issued by Tiger tooth. The betta side said the board planned to review and assess the potential deal and had not made any decision.
also disclosed that the company has reached a final share transfer agreement with linen Investment Limited, a wholly-owned subsidiary of Tencent holdings. The company will transfer 30 million ordinary shares of Huya to Tencent holdings, with a total value of $810 million. So far, it has been two years since the battle fish and tiger teeth merger rumors finally have clear news. As of the Beijing business daily, the shares of douyu and Huya rose by more than 10% before the market.
in recent years, the competition in the live game market is fierce, and the pattern has basically settled down. According to the Research Report on China’s game live broadcasting industry in 2020 (hereinafter referred to as the report) released by iResearch, the market scale of China’s independent game live broadcasting platform will exceed 20 billion yuan in 2019, and it is expected to expand to nearly 40 billion yuan in 2021. However, with the bell ringing and listing of Huya and douyu, the tentacle exit, the transformation of the battle flag, and the strengthening of industry concentration, the overall competition pattern of “two super and many strong” has been basically established.
in this regard, Chen Shaofeng, vice president of the Cultural Industry Research Institute of Peking University, said that after the merger of the two platforms, better results should be achieved, because the two platforms have common business with each other. The subsequent merger can form a better scale effect, reduce direct competition, and further reduce operating costs through business combination. After the merger, the game live broadcast may become the main business of the platform, and the market share will also be greatly improved. Generally speaking, it is a good business integration opportunity.