Chinese livestreaming game platform Huya has announced that it will acquire rival Douyu International Holdings in a deal that values Douyu at $6 billion. Douyu is second to Huya as China’s most popular online gaming platform, and together they control over 80% of the Chinese online gaming livestreaming market.
Tencent will come out very well from this deal as it owns shares in both companies and will obtain a 68% stake in the new company that is established. The move will also allow Tencent to promote its own fourth-ranked live streaming site eGame.
According to data research company iResearch, China’s game-streaming market is estimated to generate $3.5 billion in revenue this year.
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