Tencent To Create $10 Billion Streaming Giant
“As the major shareholder of both platforms, Tencent would benefit because a merger would remove unnecessary competition between them. The enlarged scale can also help to drive cost synergies and fend off emerging competitors.”
Bloomberg has confirmed Tencent’s plan to merge China’s biggest game-streaming platforms Huya Inc. and DouYu International Holdings Ltd. Tencent is the largest shareholder in the big two.
🧨 Deal would create an online giant with more than 300M users and a combined market value of $10B.
🧨 Would be the equivalent of Amazon’s, Twitch.
🧨 China’s game-streaming market is estimated to generate $3.4B in revenue this year.
🧨 A merger would help Huya and DouYu lower broadcast and content costs.
Both companies would keep their respective platforms and branding while working more closely with Tencent’s own esports site eGame. The news comes to light as US pressure looks to lock out any more market share for Chinese tech companies leading Tencent to consolidate its powerbase.