Chinese language antitrust regulator to dam Tencent’s videogaming merger – sources
July 5 (Reuters) – China’s antitrust agency will officially block Tencent Holdings Ltd (0700.HK) plan to merge the country’s two leading video game streaming sites, Huya (HUYA.N) and DouYu, three said with the Affair people familiar to Reutersuter.
Tencent has failed to find sufficient remedial action to meet the State Administration of Market Regulation (SAMR) requirements to surrender exclusive rights, two of the people said.
The internet giant recently withdrew and resubmitted the merger motion for antitrust review after SAMR told the company it could not complete the merger review within 180 days of the initial filing, one of them and a separate person said.
The people did not want to be named because the information is private.
Tencent – China’s # 1 video game and social media company – Huya, DouYu, and the SAMR did not immediately respond to Reuters’ requests for comment.
Regardless, Tencent’s plan to acquire the private search engine Sogou (SOGO.N) will be approved by SAMR this month, one of the people said. Reuters reported in April that the regulator was ready to approve the plan. Continue reading
Tencent first announced plans to merge Huya and DouYu last year to streamline its stakes in the companies that data firm MobTech estimates have an 80% stake in a market valued at more than $ 3 billion and grow quickly.
Huya and DouYu rank # 1 and # 2, respectively, as China’s most popular video game streaming sites, which users flock to watch esports tournaments and follow professional gamers.
Tencent is Huya’s largest shareholder with 36.9% and also owns over a third of DouYu, both of which are US-listed and have a combined market value of $ 6 billion.
Reuters reported in March, citing experts, that Tencent had had to make concessions on a plan to merge Huya and DouYu to address antitrust concerns. Continue reading
Reporting from Pei Li, Yingzhi Yang; Editing by Sumeet Chatterjee and Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles.