China’s antitrust regulator blocks Tencent’s $ 5.3 billion video game merger

File Photo: The Tencent logo is displayed at the booth of the 2020 China International Trade Fair (CIFTIS) held in Beijing, China on September 4, 2020. REUTERS / Tingshu Wang

July 10, 2021

Hong Kong (Reuters)-China’s market regulator announced on Saturday that Tencent Holdings Ltd would block plans to integrate Huya and DouYu, the country’s top two video game streaming sites, for anti-trust reasons.

Tencent is a partnership with Huya last year designed to streamline stakes in companies that data company MobTech is valued at over $ 3 billion and is estimated to account for 80% of the fast-growing market. We first announced plans to integrate DouYu.

Tencent is Huya’s largest shareholder with 36.9% and owns more than one-third of DouYu, both of which are listed in the United States and have a total market value of $ 5.3 billion.

The State Market Regulatory Authority (SAMR) said the decision was made after considering additional concessions proposed by Tencent for the merger.

Reuters first reported SAMR’s plans to block trading on Monday.

SAMR said that due to these mergers, given that Huya and DouYu have a combined market share of over 70% in the video game livestreaming industry and Tencent already has a market share of over 40% in the online game operations segment. He said Tencent’s dominance in this market will be strengthened.

Huya and DouYu are ranked 1st and 2nd respectively as the most popular video game streaming sites in China. On this site, users watch esports tournaments and follow professional gamers.

“We will comply with our decisions, comply with all regulatory requirements, operate in accordance with applicable laws and regulations, and fulfill our social responsibilities,” Tencent said in a statement.

The closing of the deal occurs in the ongoing crackdown on Chinese tech companies by the government. Earlier this year, antitrust authorities fined e-commerce giant Alibaba a record $ 2.75 billion for being involved in anti-competitive behavior.

Huya and DouYu did not immediately respond to requests for comment on SAMR’s decision.

(Reported by Kane Wu in Hong Kong and Josh Horwitz in Shanghai, edited by Lincoln Feast.)

China’s antitrust regulator blocks Tencent’s $ 5.3 billion video game merger

Source link China’s antitrust regulator blocks Tencent’s $ 5.3 billion video game merger

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